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  • Cambria Introduces A Global Core Portfolio ETF With Zero Management Fees [View article]
    As a benchmark, I expect in any given year it will be beaten by half of any contenders. It's measure will be how well it does over longer term time-scales because that's where it's designed to shine.

    Not that I'm advocating the fund by any means. But I am intrigued by it.
    Dec 23, 2014. 05:56 PM | Likes Like |Link to Comment
  • Cambria Introduces A Global Core Portfolio ETF With Zero Management Fees [View article]
    Yes, to a point. Would you have guessed this time last year that 20+yr T-Bills would beat the socks off the S&P500 and the NASDAQ?

    TLT vs. SPY vs. QQQ: 24.85% to 14.87% to 20.29% YTD Total Return.

    "Predictions are hard, especially about the future," as my boyhood hero once said.
    Dec 23, 2014. 05:53 PM | Likes Like |Link to Comment
  • Cambria Introduces A Global Core Portfolio ETF With Zero Management Fees [View article]
    I agree on GVAL. But to be fair to Meb Faber, he started this fund at an awful time. First it's been a poor year for global equity. Then, a value fund, almost by definition, will start slow. Part of why I wouldn't buy it. It takes time for value investments to start paying off. Once it gets up a head of steam, I expect it to do better (of course it would be hard to do worse).


    Taken together, these provide an explanation. Not a pass, mind you, but an explanation.
    Dec 23, 2014. 05:48 PM | Likes Like |Link to Comment
  • Will ETRACS 2x High Dividend, Low Volatility ETN Really Return Either? [View article]
    Data from Investspy. Thus, portfolio volatility, not weighted average.

    I believe you are correct and simply taking the weighted average for volatility would not be a valid metric.

    On edit: I notice it does say "weighted average" in the table. Now I'll have to have a look and get back to you. But I can say that the table comes from investspy and not my own calculation of a weighted average for volatility. I did calculate the weighted average for yield however so I expect that's where the table's label came from.
    Dec 19, 2014. 01:14 PM | Likes Like |Link to Comment
  • Wild Ride For OXLC  [View instapost]
    yeah. Yesterday was painful to watch, but about 3/4ths or so of it has come back home today.

    Most of my high yield holdings are in a taxable account. I'm trying to decide on whether or not to take some serious losses over the next couple of weeks (OXLC included). Could switch it for ECC, I'm thinking
    Dec 17, 2014. 03:44 PM | Likes Like |Link to Comment
  • In Search Of Income: High-Yield Bond CEFs (Part I) [View article]
    I look forward to the muni article. As you know, along with treasuries they have been the place to be in fixed-income this year. Last year this time I was selling mine for the (gut-wrenching) tax-losses and buying others for the bargains.

    As for the timing, I've been following a momentum strategy for fixed-income ETFs (TLT, LQD, and HYG) for about a year and a half now. It was in HYG much of last year. In January it switched to TLT and has kept me there most of the year. About the end of Aug it went strong negative on HYG and remained pretty neutral on LQD. I took that message to heart and exited all my CEF HY Bond holdings through August and September or so. Turned out to be a very reliable signal this time around and a bright spot in a recent past dominated by darkness.
    Dec 17, 2014. 03:35 PM | Likes Like |Link to Comment
  • In Search Of Income: High-Yield Bond CEFs (Part I) [View article]
    I enjoyed this article. Thanks for the research. I'm looking forward to Part 2.

    A couple of months ago I moved out of this category (and related ones) entirely. Noting things like the discount expansion you've documented, I have been wondering if it's time to get back in. Your article has given me a lot to think about.

    I'll add one thing. For a taxable account, it's worth a hard look at tax-exempt muni-bond CEFs. Depending on one's marginal rate, they can easily provide a better return after taxes. Of course munis have had a quite good year, while HYbonds have suffered, so it may not be a timely move.
    Dec 17, 2014. 11:58 AM | 1 Like Like |Link to Comment
  • Wild Ride For OXLC  [View instapost]
    Thanks for the update here.
    Dec 16, 2014. 06:25 PM | Likes Like |Link to Comment
  • Update: Double-Digit Distribution Portfolio [View article]
    If I get some time this weekend I may go through a rebalancing exercise. If so, I'll be looking toward optimizing for price.

    I also think I'd swap DVHL for CEFL. Some asked why I didn't do that up front but I felt at the time that I had CEFs adequately covered and adding CEFL would have been redundant. But I've not been excited by DVHL's returns or distributions. Should have trusted my judgement from when DVHL was introduced and I came down on it quite negatively > http://bit.ly/1ypJ6c3 <.
    Dec 6, 2014. 11:29 AM | Likes Like |Link to Comment
  • Update: Double-Digit Distribution Portfolio [View article]
    mikelavigne: Thanks.

    Yes on both. There is commonly an end-of-year distribution of cap gains or undistributed net investment income (UNII). One thing to look at is if UNII is positive or negative (but be careful how you interpret this when doing DD on an initial investment; it's often not as straightforward as it would seem and the published data is often out of date).

    And CEFs typically have extensive tax loss selling. Of course there has to be a loss which a lot of sectors (say, real estate) haven't seen this year. I'd be looking at high-yield bonds, energy and maybe some others for signs of tax-loss selling that drives discount expansion, but I'm not looking to take cap gains to generate the funds to make new buys.
    Dec 6, 2014. 11:24 AM | 1 Like Like |Link to Comment
  • Update: Double-Digit Distribution Portfolio [View article]
    Hmmm.

    Yield
    FFC 7.93%
    JPC 8.00%
    wash

    Total Return 1yr (mkt)
    FFC 30.7%
    JPC 19.2%
    Advantage: FFC +++

    Total Return 1yr (NAV)
    FFC 18.1%
    JPC 13.6%
    Advantage: FFC +++

    3yr (mkt)
    FFC 17.0%
    JPC 16.0%
    Advantage: FFC +


    3yr (NAV)
    FFC 17.7%
    JP 14.8%
    Advantage: FFC ++

    Prem/Disc
    FFC 3.68%
    JPC -9.88%
    Advantage JPC +++

    So, the discount is JPC's only advantage right now. But that -10% discount is typical for the fund. It's been there for a year and a half. I would not expect or predict a marked change in its status any time soon. In the face of its yield and recent performance stats I don't see any catalyst for a discount compression move here.

    At the time I started this exercise FCC had a -3% Discount which was well below "normal" for the fund and which I predicted would erode http://seekingalpha.co.... This is what has played out.

    You may be right and FFC may have run its course, but I'll be holding it for at least a while longer. And, if I do decide to move out of it, JPC does not impress.

    But hey, good luck on that short call.
    Dec 4, 2014. 12:41 PM | 1 Like Like |Link to Comment
  • Update: Double-Digit Distribution Portfolio [View article]
    That's probably because you're a newish user with only 2 comments prior to that first one here. i think new users' comments are run by the moderators for a period so they can determine if a new user is a shill/troll/difficult user. Welcome to seekingalpha and be patient a bit.
    Dec 3, 2014. 09:13 PM | 1 Like Like |Link to Comment
  • Update: Double-Digit Distribution Portfolio [View article]
    You're correct. The fund is paying 9.95% on NAV with income of 7.21% on NAV. This is, of course, not a sustainable situation. Either the managers are going to have to generate better returns or they'll have to cut the dividend. For a managed distribution fund, managers try, often for much too long, to maintain the dividend even at the cost of NAV erosion.

    I will frequently take issue with objections based on return of capital in an option-income fund, but in this case it seems your point is quite valid.

    I'd have to go back to my notes to see why I put this in here, but I suspect I was attracted to the 10%+ distribution.

    One can find better option-income funds by giving up a bit of yield.

    Bottom line: I tend to agree that this is a bad call based on a a 2 minute look.

    By the way, i like cefconnect.com and cefanalyzer.com for this sort of information. Morningstar is good, too. I find cefa.com difficult to use, but that's me.
    Dec 3, 2014. 09:10 PM | Likes Like |Link to Comment
  • Takeaways From 2014's Biggest Bond Deal [View article]
    Welcome back.
    Your insights have been missed.
    Dec 3, 2014. 09:58 AM | Likes Like |Link to Comment
  • Update: Double-Digit Distribution Portfolio [View article]
    Good points all. Thanks for that.
    Dec 3, 2014. 09:55 AM | 1 Like Like |Link to Comment
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