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Out Of The Night Comes A Song That I Know, Twisted And Ruined And Black

|Includes:Calamos Global Dynamic Income Fund (CHW), GEQ, PSEC, TPZ, UTF

"User doesn't like his current job and wants a different type of job being the house supervisor. Well, I don't know about his sense of humor or communication skills. He says he absolutely doesn't want to be charge nurse of the unit. He says he doesn't see the correlation between the two."

"I know! Maybe if we make him do that a few times a week he'll learn to love it! Especially if we smile at him when we come through and act surprised that he's the charge! He can do the same type of work he's good at and have the added responsibility of supervising the entire unit and staff and wasting several hours a week in doctor's meetings and get paid a whole $1 extra an hour!"


One nice thing about writing these blog things is that I can look back and see if there are investments I was considering but didn't buy because another one was more appealing at the time.

A week or two ago I sold off my Roth cefs and preferreds for a profit and bought (NASDAQ:PSEC) the day after it started dropping. 12% yield compounded tax free should be quite nice for a while. (note that I'm not contributing to that account until the taxable has a year's equivalent salary in it and both my 401k and taxable account are worth much more and are much more diversified)

(NASDAQ:CHW) - one of the cefs I sold off in the Roth account and I've owned on and off for a couple of years. About half equities, some convertibles some bonds. Global. Over a 13% discount right now, pays monthly and a bit over a 8% distribution rate. Even with all the European craziness and problems over the past few years, the nav keeps creeping up and the market price has started to diverge more.

(NYSE:TPZ) - wrote about this last time so I'll just copy/paste:

"owned it a couple of years ago, and if had not sold and dripped I would have been very happy. Anywho, currently at a 10.5% discount. Yield is only 5.8%. The NAV when they started in 2009 was 19 and is currently 28.4. And the distribution hasn't changed since it started. Monthly pay. Mix of mlps and energy bonds. No k1 form. NAV flatlined over the last year, so that may be the reason it's dropped to a big discount. Or because it holds a fair amount of fixed income. Monthly pay."

Here's an article I came across a while ago about mlp cefs:

which is worth a read. Author argues that (NYSE:KYN) is the best mlp fund and it may be. It also trades at a premium so that rules it out for me. I went to Costco a couple of Friday's ago and saw that tenderloin "prime" was $21/lb and "choice" was $11/lb. I don't doubt the prime came from a less deformed steer, but at the end of the day it's how you cook and season it that counts and I bet I can get a good meal for a better price.

Anywho. Where was I? Oh. If not for that article I would not have known that a couple of the Tortoise funds are merging and that explains why some are at a significant discount (and thus show up when I do an initial screen) and others are close to nav value. What that indicates to me is that Tortoise is trying to compete with Kayne Anderson by making shareholder friendly moves.

I bought NDP last time, and am considering TPZ in the hope that Tortoise might do some shareholder friendly moves with their other funds in the future. And a halfway decent yield is nice and the navs have done fine since inception.

(NYSE:UTF) - this is another fund I owned a couple of years ago and if had just held it and dripped instead of taking a quick profit, I would have been very happy with the results. Close to a 12% discount and a 6.5% distribution. It's listed as an infrastructure fund. Go over to cefconnect and check out how the nav has done and you'll see that it's come back nicely since 2008.

No preferreds that I saw currently interest me. (NYSE:GEQ) might be a wild card option, but the discount has narrowed a bit since I last was thinking about it. And the next distribution won't be until May or thereabouts.

edit - OXLCO is my current favorite preferred below par value - I already have a fair amount (for me), but I would buy more as my backup option if the above things narrow their discounts. My crappy discount broker informed me that they will do a synthetic drip for preferreds, so the current plan is to buy them below par, drip the dividend and have a limit order in place for par value. And OXLCO is mandatory redeemable in 9 years. And is trading (when it trades) around $23 with a par value of 25. The underlying fund looks nice, but I will not buy into a cef unless it's close to double digit discount.

So. If the discounts hold by my Friday paycheck, CHW first, UTF second, TPZ third.

edit for 3/14 - TPZ it was.

Disclosure: I am long PSEC.

Additional disclosure: The sun is out! It's kind of warm!