mikecupertino

10 Closed-End Funds Trading at Large Discounts

Mr Karsan recommends that investors should "always do their homework". He needs to take his own advice.

One of the funds on this list, MGB, is a highly leveraged junk bond fund. This seems to me to qualify as a highly toxic investment. Another fund on the list, GIFD, has, according to Morningstar, a 5 year annualized market return of 2.1%. In other words, an investor would have done much better investing in a money market fund.

10 Closed-End Funds Trading at Large Discounts

I don't think the fact that MSP is trading at a discount is a mystery. Since inception (4/27/05), total return to holders of the fund including dividends has been -4.2% per year. The fund managers have a knack for picking losers and are being appropriately rewarded for that talent.