Value Research

Deep value, long/short equity, event-driven, research analyst
Value Research
Deep value, long/short equity, event-driven, research analyst
Contributor since: 2011
Company: Freelance Value Research
Thank you for your thoughtful comment. Consider the following:
-My holdings are dated since I use
- A shares (ITHAX ) of the fund have a 1.12%% expense ratio (Annual Report). That is still high compared to the cheaper alternatives out there.
- When you buy a fund you get returns based on the portfolio, regardless of the selection method. Darts, top-down, bottom-up...those are still financial sector stocks.
-Morningstar categorizes the fund as large cap blend and its (dated) holdings seem to support that. 84% of fund holdings were in large/mega cap stocks.
-Morningstar benchmarks the firm to the Russell 1000. My point was that most of the firm's returns could be replicated by these common, cheap ETFs.
-I wrote an article to evaluate a few small cap funds:
An investor could add this to one of the ETFs I mentioned in the article for small cap exposure.
I evaluate some small cap funds which charge lower fees in the following article:
One catch to many of these CEFs is that they are less liquid than their holdings. Another is fees.
I have noticed that many investors distrust the idea of a capital distribution. On the contrary, there is nothing wrong with getting paid back part of your investment (it is not taxable until the total capital returned exceeds the investment). It is actually a GOOD thing if the CEF is trading at a discount, since you get paid back the book value of principal that you acquired at discounted market prices.
I suggest reading more about this concept. The analog of this in bonds is principal repayment.
Sorry, that's a typo.
The company uses natural gas derivatives to hedge its future purchases of natural gas which it uses to fuel its operations. It is a hedge on a different input, not an additional sugar hedge.
To clarify, I didn't write the title and not all small caps or even most small caps went up in value. Some did, and in addition, stocks that went up in value tended to be smaller. This more accurate description makes for a lousy title though!
By GEN I mean GenOn Energy, Inc. traded on the NYSE.