jse17

Timing the Addition of a CEF to Your Portfolio

Nicely discounted CEFs are one of the few venues where the “little guy” has a fighting chance. The low volume of most CEFs precludes hyperactive Hedge Fund manipulation and significant discounts more than offset active management fees.

BTW, a few CEFs actually have lower management fees than some of the newer, more avant- garde ETFs e.g., ADX and PEO. One of the classic, investor friendly CEF plays is buying ADX at a current 17% discount and vicariously purchasing PEO, the fund’s largest holding, at an additional 17% discount. The combined management fee for both funds is approximately 1.1%. (To quote the Rappers, “Can’t beat that!”)

I enjoy Gary’s work and look forward to his posts. Best of luck to all.