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John Cole Scott

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  • The Closed-End Fund Trifecta: How To Analyze A CEF [View article]
    Brycenesbitt,

    Going to that link loads my preferences at CEF Connect vs. what you were trying to show me. If the market price of a CEF is above NAV then it is an absolute premium and if the market price is below NAV it is an absolute discount.
    Jun 4 09:26 AM | Likes Like |Link to Comment
  • The Best-Performing Utility CEFs Over The Last 12 Months. [View article]
    Robert, Thank you for the kind words. We are very pleased there are more people adding to the closed-end fund conversation on SA.

    Best, JCS
    May 21 11:43 AM | Likes Like |Link to Comment
  • Closed-End Fund Discounts: A Master-Class In Nuance [View article]
    Mercy, Thank you for the feedback. Warm regards, JCS
    May 20 02:26 PM | Likes Like |Link to Comment
  • First Quarter 2014 CEF Review And Outlook: Discounts, Yield, IPOs And Activist Activity [View article]
    Robin,

    Thank you, feedback has been very positive. I plan to use a similar format each quarter as part of our coverage of the structure.
    Apr 16 11:52 PM | Likes Like |Link to Comment
  • First Quarter 2014 CEF Review And Outlook: Discounts, Yield, IPOs And Activist Activity [View article]
    Hasu,

    BDC CEFs are not in CEF Connect [Yet]. Some good news though, we confirmed today that The CEF Association has added BDC CEFs to their constituents and I hear M* is added them to the CEF part of their website. I will be at Capital Link's CEF/ETF conference next week and will see if I hear more from M*/Thomson.

    I know of no public listings, we have access to various analyst coverage and my data team tracked down the SEC filings and fund sponsor websites. Here is the current list of BDC CEFs. They file like operating companies but are structured and regulated as closed-end funds.

    ARCC, ACAS, PSEC, AINV, MAIN, FSC, SLRC, HTGC, GBDC, PNNT, TCAP, NMFC, BKCC, TCPC, TCRD, MCC, TICC, CSWC, TAXI, MCGC, MVC, FDUS, KCAP, CPTA, GSVC, GARS, WHF, SVVC, SUNS, GAIN, PFLT, GLAD, SCM, NGPC, HRZN, OFS, MRCC, TINY, HCAP, FSFR, SAR, FULL, KIPO, TPVG, CMFN, ACSF, RAND.
    Apr 16 11:50 PM | Likes Like |Link to Comment
  • First Quarter 2014 CEF Review And Outlook: Discounts, Yield, IPOs And Activist Activity [View article]
    Thanks Turk for the positive feedback. Picking actual funds requires knowledge of an investors risk tolerance, timeline and investment objective. It is also how we make our living.

    We sell access to CEF News Alerts, Our CEFU Data, a Monthly Best Ideas List, consulting and managed accounts in one of our 8 portfolio models. If you have any interest, sign-up on our website for The Scott Letter to learn more about the firm and services.
    Apr 16 09:27 AM | Likes Like |Link to Comment
  • What Does A Closed-End Fund's Leverage Actually Cost? Achilles' Heel Or An Investor's Salvation? [View article]
    Have not forgot about this question. Hope to have it next week ... we were backlogged with quarter-end and quarter beginning workflow.
    Apr 15 12:10 PM | Likes Like |Link to Comment
  • What Does A Closed-End Fund's Leverage Actually Cost? Achilles' Heel Or An Investor's Salvation? [View article]
    W.Kirk, very good point. We plan to add that data to our system as well. My initial question was what is a normal amount of cost. Getting more detailed on the specifics will help us make better choices when we do see rates rise.
    Mar 26 01:58 PM | Likes Like |Link to Comment
  • What Does A Closed-End Fund's Leverage Actually Cost? Achilles' Heel Or An Investor's Salvation? [View article]
    I will ask my data manage to see if he can consolidate the inferred leverage cost by fund sponsor. I think it should also be groups by Equity, Taxable bond and Muni bond as they have different leverage best practices. It will take a few days, but will post our findings here.
    Mar 26 09:08 AM | Likes Like |Link to Comment
  • The Future Of Closed-End Funds: Yield May No Longer Be The Marketing Plan [View article]
    Janus had expressed some interest last year, we will see. Watch for N-2 SEC filings.
    Feb 17 12:46 PM | Likes Like |Link to Comment
  • The Future Of Closed-End Funds: Yield May No Longer Be The Marketing Plan [View article]
    I think they meant that you cannot write options on CEFs vs. CEFs having about 30 funds that focus in some way on option writing as their investment strategy.
    Feb 17 12:45 PM | Likes Like |Link to Comment
  • The Future Of Closed-End Funds: Yield May No Longer Be The Marketing Plan [View article]
    My opinion would be that ETFs are generally liquid (due to creation units and redemption) exposure vehicles. CEFs are far less liquid. The average CEF is $482M, and trade $1.25M a day in liquidity. 207 of the 594 (35%) trade under $500K a day in ave liquidity.

    They benefit from the fixed capital, often permanent leverage, about 80% of CEF leverage is structural or permanent. CEFs offer investors, mostly individual and smaller to mid-sized, patient investors, the opportunity to buy access to portfolio models that most $1B firms/funds would have no idea how to access. I believe that for 95% of ETFs/CEFs they do not compete as their structures offer different strength and weakness and they do not fill the same hole in a portfolio goal. Some people prefer ETFs, others CEFs.

    An article covered this concept last year, but I would argue it is not a fair apples to apples comparison. http://bit.ly/1chGXbz (Data from our 2/14/14 CEF Universe Data).
    Feb 17 12:44 PM | Likes Like |Link to Comment
  • The Future Of Closed-End Funds: Yield May No Longer Be The Marketing Plan [View article]
    Yes, I agree that would have been a more accurate term.
    Feb 17 12:29 PM | Likes Like |Link to Comment
  • The Future Of Closed-End Funds: Yield May No Longer Be The Marketing Plan [View article]
    FYI - Just for the record, from our CEF Universe data 2/14/14, NHF currently shows 0.86% is their cost of leverage (all 40 Act and permanent) and a 2.93% total expense ratio.
    Feb 17 12:28 PM | Likes Like |Link to Comment
  • The Future Of Closed-End Funds: Yield May No Longer Be The Marketing Plan [View article]
    Guardian, a very fair point, but they were the #1 performing CEF in 2013 on a NAV total return basis which is net of fees. They are essentially a hedge fund inside a CEF wrapper. They are currently unique in the CEF space, not a typical Loan Fund. If you have a not already done so, read previous SA articles on NHF like the good piece by Fibonacci Sequence, or our published interview with Brian Mitts, their COO.

    Our position on fees is to pick the lower fee - if all other data is essentially the same, but to focus on NAV total return performance and NAV correlation to other CEFs to understand what they own and the value of the manager is far more important in my opinion. They have raised their dividend 4 times in the past year for a cumulative 30.9% dividend growth. That said this article was not intended to be about them, but my goals and hopes for the future of CEFs. I am hoping for some feedback on that part of the article.
    Feb 14 12:05 PM | Likes Like |Link to Comment
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