Madison/Claymore Covered Call Fund (MCN)

All Comments on MCN

  • commenter
    Internet2k4
    Jan 23 01:33 PM
    Assessing Closed-end Call Writing Funds (CEF: MCN) [view article]
    If the concern is that the CEF unsustainably cannibalizes its NAV in covering calls, that doesn't seem to be happening with MCN - according to ETF Connect the July 04 inception NAV was $14.30 and today it's $14.75 - and the other CEFs in the table are a mixed bag in sustaining or growing the IPO NAV. What has disappeared in all of them is the IPO price premium to NAV, as the Barrons article observes. Reply
  • commenter
    SeekingAlpha
    Editors
    Jan 23 02:31 AM
    My Website
    No Free Lunch with Covered Call CEFs [view article]
    This is interesting -- the first three reasons seem to suggest that these funds may be a bargain now, as investors who mistakenly bought them at the IPO at a premium are now dumping them at a discount. But the final reason suggests they're not a great deal.

    I wonder which is correct...     Reply
  • commenter
    pjindent
    Jan 06 12:08 PM
    Call writing (BEP, FFA, IGD, JPZ, JSN, MCN, NFJ) [view article]
    I have been researching BEP and FFA and observed that they are selling to significant discount to NAV. The yield is really good. Any theories on what may be going on?

    Here is my approx analysis based on NAV, not on market price. As of Jan 5, 2006
    BEP's NAV is 17.87. It started trading in March, 2005 with NAV of 19.07. It has paid two dividents of $1 each. So over 9 months the return is: $0.80, which is about 4.2%. SP500 is up about 8% in that period

    FFA has a NAV of 19.31, it started in Oct 2004 at NAV=19.10. It has declared divident of 2.135. So return is: $2.345, which is 12.27%. SP500 is up about 13% in that period.

    I realize the returns should have no correlation to performance of SP500, other than its volatility.

    My analysis is rudimentary but I am interested in sparking a discussion about how to evaluate/benchmark the performance of these instruments.     Reply
  • commenter
    SeekingAlpha
    Editors
    Dec 20 08:47 AM
    My Website
    Exchange-Traded Funds and Closed-End Funds by Asset Class, Type and Provider [view article]
    IIF and IFN are closed-end funds for India; and check out the articles on the India Stock Blog about the new ETF for India. Reply
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