Chamois16's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/7475/comments http://seekingalpha.com/article/169168-a-cyclical-guide-to-cef-and-etf-investing?source=feed#comment-736149 736149 personal.fidelity.com/...

If you click on the sector names below the graphic, each will be discussed]]> Thu, 29 Oct 2009 17:27:09 -0400 personal.fidelity.com/...

If you click on the sector names below the graphic, each will be discussed]]> http://seekingalpha.com/article/119036-index-etfs-have-the-edge-over-actively-managed-cefs?source=feed#comment-379418 379418
One of the advantages of CEF is the ability to exploit periodic excursions from equilibrium discounts common to each fund. That doesn't ccur with ETF subject to creation unit arbitrage, usually penalizing the ETF holder in favor of the arb. There are times in a market cycle in which index ETF outperform CEF and vice versa.

The article seems to be comparing an investment vehicle which is at best nascent (how many truly actively managed ETF are out there). with CEF which have been around for a long time and are particularly suited to sspecific asset classes.

You would do better to limit your comparison to index ETF vs actively managed ETF when sufficient data becomes available, and not try to deal with the vaery different attributes of CEF]]> Sat, 07 Feb 2009 15:04:58 -0500
One of the advantages of CEF is the ability to exploit periodic excursions from equilibrium discounts common to each fund. That doesn't ccur with ETF subject to creation unit arbitrage, usually penalizing the ETF holder in favor of the arb. There are times in a market cycle in which index ETF outperform CEF and vice versa.

The article seems to be comparing an investment vehicle which is at best nascent (how many truly actively managed ETF are out there). with CEF which have been around for a long time and are particularly suited to sspecific asset classes.

You would do better to limit your comparison to index ETF vs actively managed ETF when sufficient data becomes available, and not try to deal with the vaery different attributes of CEF]]> http://seekingalpha.com/article/110575-timing-the-addition-of-a-cef-to-your-portfolio?source=feed#comment-365460 365460
Annual Expense Ratios
As of 06/30/2008
ACG Common Shares
Management Fees 0.72%
Other Expenses 1.51%
Total 2.23%]]> Sun, 25 Jan 2009 09:17:54 -0500
Annual Expense Ratios
As of 06/30/2008
ACG Common Shares
Management Fees 0.72%
Other Expenses 1.51%
Total 2.23%]]> http://seekingalpha.com/article/110575-timing-the-addition-of-a-cef-to-your-portfolio?source=feed#comment-365445 365445 ARPS), so the interest on the $1B loan appears as "other interest" in the expense ratio.

Had ACG used ARPS, the required dividends would have shown up as liabilities on the balance sheet rather than an expense in the income statement.

This environment shows the advantage of active management, as treasuries lose favr.]]> Sun, 25 Jan 2009 09:01:12 -0500 ARPS), so the interest on the $1B loan appears as "other interest" in the expense ratio.

Had ACG used ARPS, the required dividends would have shown up as liabilities on the balance sheet rather than an expense in the income statement.

This environment shows the advantage of active management, as treasuries lose favr.]]> http://seekingalpha.com/article/114639-home-prices-may-be-nearing-bottom-bank-equities-to-follow?source=feed#comment-359780 359780
If everyone agreed this is a good time to get serious about banks, it would be too late to exploit what is arguably an oversold situation among retail and commercial banks with well-managed risk. JMO]]> Mon, 19 Jan 2009 10:21:39 -0500
If everyone agreed this is a good time to get serious about banks, it would be too late to exploit what is arguably an oversold situation among retail and commercial banks with well-managed risk. JMO]]> http://seekingalpha.com/article/107429-three-companies-perfectly-positioned-to-bridge-the-energy-gap?source=feed#comment-313087 313087
General Electric: Genuine Risk of Collapse?
by: James Quinn November 17, 2008 | about stocks: GE

General Electric (GE), the legendary American institution, founded in 1878 by Thomas Edison, is in deep trouble. Its PR machine has been in constant spin mode as the company sinks deeper into despair. It is one of the few companies in the U.S. that still retains a AAA rating. Considering Moody’s and S&P’s track record, rating companies and financial instruments, that AAA rating is not worth the paper it is written on. One look at GE’s balance sheet will convince you they do not deserve a AAA rating. AAA companies do not need to take the desperate actions that GE has taken in the last few months.? etc etc in a very long screed.]]> Sun, 23 Nov 2008 16:01:38 -0500
General Electric: Genuine Risk of Collapse?
by: James Quinn November 17, 2008 | about stocks: GE

General Electric (GE), the legendary American institution, founded in 1878 by Thomas Edison, is in deep trouble. Its PR machine has been in constant spin mode as the company sinks deeper into despair. It is one of the few companies in the U.S. that still retains a AAA rating. Considering Moody’s and S&P’s track record, rating companies and financial instruments, that AAA rating is not worth the paper it is written on. One look at GE’s balance sheet will convince you they do not deserve a AAA rating. AAA companies do not need to take the desperate actions that GE has taken in the last few months.? etc etc in a very long screed.]]> http://seekingalpha.com/article/99348-midstream-mlps-crashing-present-opportunity?source=feed#comment-280381 280381 Sun, 12 Oct 2008 08:54:42 -0400 http://seekingalpha.com/article/94529-six-reasons-to-like-the-morgan-stanley-emerging-market-domestic-debt-fund?source=feed#comment-253613 253613
Nevertheless, in a well diversified portfolio, these CEF may have a place. EDD is probably as good as most and is particularly attractive at current discount and distribution rate. JMO]]> Sat, 13 Sep 2008 17:42:54 -0400
Nevertheless, in a well diversified portfolio, these CEF may have a place. EDD is probably as good as most and is particularly attractive at current discount and distribution rate. JMO]]> http://seekingalpha.com/article/80835-ge-microsoft-on-new-low-list?source=feed#comment-183491 183491 Wed, 11 Jun 2008 13:17:55 -0400 http://seekingalpha.com/article/76542-currency-precious-metal-and-futures-etfs-don-t-get-caught-in-the-tax-trap?source=feed#comment-165705 165705
"There are some investment companies, known as exchange-traded funds or ETFs, which are legally classified as open-end companies or UITs. ETFs differ from traditional open-end companies and UITs, because, pursuant to SEC exemptive orders, shares issued by ETFs trade on a secondary market and are only redeemable in very large blocks (blocks of 50,000 shares for example). ETFs are not considered to be, and are not permitted to call themselves, mutual funds."]]> Sun, 11 May 2008 08:35:57 -0400
"There are some investment companies, known as exchange-traded funds or ETFs, which are legally classified as open-end companies or UITs. ETFs differ from traditional open-end companies and UITs, because, pursuant to SEC exemptive orders, shares issued by ETFs trade on a secondary market and are only redeemable in very large blocks (blocks of 50,000 shares for example). ETFs are not considered to be, and are not permitted to call themselves, mutual funds."]]> http://seekingalpha.com/article/74037-can-eaton-vance-s-tax-advantaged-dividend-fund-sustain-its-yield?source=feed#comment-161232 161232 Sat, 03 May 2008 16:45:03 -0400 http://seekingalpha.com/article/74037-can-eaton-vance-s-tax-advantaged-dividend-fund-sustain-its-yield?source=feed#comment-161230 161230
The original poster apparently missed the capture strategy and subsequent posters have confused EVT with other funds]]> Sat, 03 May 2008 16:42:16 -0400
The original poster apparently missed the capture strategy and subsequent posters have confused EVT with other funds]]> http://seekingalpha.com/article/50739-understanding-closed-end-funds?source=feed#comment-102756 102756 Thu, 22 Nov 2007 10:16:53 -0500 http://seekingalpha.com/article/50739-understanding-closed-end-funds?source=feed#comment-102753 102753 sec.gov

Mutual Funds

A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, or other securities. Legally known as an "open-end company," a mutual fund is one of three basic types of investment company. The two other basic types are closed-end funds and Unit Investment Trusts (UITs).

There are enough differences within the ICA 1940, to mse the distinction worthwhile.]]> Thu, 22 Nov 2007 10:02:45 -0500 sec.gov

Mutual Funds

A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, or other securities. Legally known as an "open-end company," a mutual fund is one of three basic types of investment company. The two other basic types are closed-end funds and Unit Investment Trusts (UITs).

There are enough differences within the ICA 1940, to mse the distinction worthwhile.]]> http://seekingalpha.com/article/50739-understanding-closed-end-funds?source=feed#comment-99398 99398
"Closed-End Funds

"A "closed-end fund," legally known as a "closed-end company," is one of three basic types of investment company. The two other basic types of investment companies are mutual funds and unit investments trusts (UITs)." -sec.gov]]> Mon, 22 Oct 2007 21:21:10 -0400
"Closed-End Funds

"A "closed-end fund," legally known as a "closed-end company," is one of three basic types of investment company. The two other basic types of investment companies are mutual funds and unit investments trusts (UITs)." -sec.gov]]> http://seekingalpha.com/article/36012-is-china-headed-for-a-1929-style-market-crash?source=feed#comment-86670 86670
Why not discuss the heavy investments into infrastructure, such as nuclear power and railroad tracks, that will promote the conversion of an export economy to local consumption. The Shanghai and Shenzhen markets may be overbought, but not on the scale of 1929 and the earmarks of equivalent recession are missing.]]> Mon, 21 May 2007 12:52:16 -0400
Why not discuss the heavy investments into infrastructure, such as nuclear power and railroad tracks, that will promote the conversion of an export economy to local consumption. The Shanghai and Shenzhen markets may be overbought, but not on the scale of 1929 and the earmarks of equivalent recession are missing.]]> http://seekingalpha.com/article/29615-what-readers-say-about-seeking-alpha?source=feed#comment-86578 86578 Sat, 19 May 2007 18:30:20 -0400 http://seekingalpha.com/article/35983-implications-of-a-china-crash?source=feed#comment-86560 86560
The PRC mainland markets may well be seriously overbought, and that may bring pain to local speculators, but the economy, in absence of persuasive rationale, seems sustainable through the Olympics and beyond. The Government has established infrastructure, such as state owned funds and QDII destination expansion, to support where and when needed.

The PRC challenge is to shift to a domestic consumption-based economy before there are more serious problems among the importing nations.]]> Sat, 19 May 2007 10:58:39 -0400
The PRC mainland markets may well be seriously overbought, and that may bring pain to local speculators, but the economy, in absence of persuasive rationale, seems sustainable through the Olympics and beyond. The Government has established infrastructure, such as state owned funds and QDII destination expansion, to support where and when needed.

The PRC challenge is to shift to a domestic consumption-based economy before there are more serious problems among the importing nations.]]> http://seekingalpha.com/article/35921-converting-closed-end-funds-to-etfs-has-the-trend-begun?source=feed#comment-86500 86500
The prinicpal disadvantage of CEF is their low daily trading volumes, which limit their utility for larger investors. Otoh, there are many offsetting advantages, such as leverage, hugher yields and freedom from cash drag, which make CEF attractive to average retail investors.

The reasons why CEF managers would want to convert to ETF on a large scale are certainly not clear, nor is the rationale which might be persuasive to CEF investors.]]> Fri, 18 May 2007 09:21:54 -0400
The prinicpal disadvantage of CEF is their low daily trading volumes, which limit their utility for larger investors. Otoh, there are many offsetting advantages, such as leverage, hugher yields and freedom from cash drag, which make CEF attractive to average retail investors.

The reasons why CEF managers would want to convert to ETF on a large scale are certainly not clear, nor is the rationale which might be persuasive to CEF investors.]]> http://seekingalpha.com/article/34801-us-investors-not-feeling-the-chinese-stock-market-sizzle?source=feed#comment-85801 85801
More fundamentally, there is a major performance distinction between A&B share mainland markets and HK. CAF, as the example, marches to a different drummer than the other China CEF, even if that drummer may potentially be out of control.

As long as these PRC markets are growing rapidly, I think it is wrong to discount the utility of ETF and CEF as vehicles, CEF, for example, must recognize harvested capital gains through distribution, reducing future market risk associated with ownership.]]> Wed, 09 May 2007 12:08:04 -0400
More fundamentally, there is a major performance distinction between A&B share mainland markets and HK. CAF, as the example, marches to a different drummer than the other China CEF, even if that drummer may potentially be out of control.

As long as these PRC markets are growing rapidly, I think it is wrong to discount the utility of ETF and CEF as vehicles, CEF, for example, must recognize harvested capital gains through distribution, reducing future market risk associated with ownership.]]> http://seekingalpha.com/article/32810-new-etf-will-track-natural-gas-price?source=feed#comment-84536 84536
"USNG is not a mutual fund registered under the Investment Company Act of 1940 and is not subject to regulation under such Act."]]> Thu, 19 Apr 2007 09:53:03 -0400
"USNG is not a mutual fund registered under the Investment Company Act of 1940 and is not subject to regulation under such Act."]]> http://seekingalpha.com/article/32721-natural-gas-etf-launches-a-natural-gas-primer?source=feed#comment-84529 84529
?USNG is not a mutual fund registered under the Investment Company Act of 1940 and is not subject to regulation under such Act."]]> Thu, 19 Apr 2007 09:30:41 -0400
?USNG is not a mutual fund registered under the Investment Company Act of 1940 and is not subject to regulation under such Act."]]> http://seekingalpha.com/article/28288-emerging-markets-etfs-predictable-and-consistent?source=feed#comment-81899 81899
Excess volatility at the portfolio level is to be avoided since it represents risk, but a properly diversified portfolio will handle, and benefit from, emerging market stocks and index funds.]]> Wed, 28 Feb 2007 13:26:13 -0500
Excess volatility at the portfolio level is to be avoided since it represents risk, but a properly diversified portfolio will handle, and benefit from, emerging market stocks and index funds.]]> http://seekingalpha.com/article/25655-get-ready-for-the-chinese-bubble-to-burst?source=feed#comment-80895 80895
One getrs an entirely different picture comparing corporate P/E and PEGs in markets catering to different investor groups. Certainly some good Chinese stocks became overbought, eg China Life, and are in the process of correcting, but to suggest that FXI and many of its components are in a bubble, without presenting rationale as to why, seems unfair.]]> Thu, 01 Feb 2007 09:09:50 -0500
One getrs an entirely different picture comparing corporate P/E and PEGs in markets catering to different investor groups. Certainly some good Chinese stocks became overbought, eg China Life, and are in the process of correcting, but to suggest that FXI and many of its components are in a bubble, without presenting rationale as to why, seems unfair.]]> http://seekingalpha.com/article/25274-eaton-vance-enhanced-equity-fund-a-different-way-to-extract-extra-yield?source=feed#comment-80718 80718
Once again, published distribution numbers and yields are net of fund expenses.]]> Mon, 29 Jan 2007 12:53:17 -0500
Once again, published distribution numbers and yields are net of fund expenses.]]> http://seekingalpha.com/article/25259-new-infrastructure-etf-from-ssga-a-closer-look?source=feed#comment-80670 80670
The new SSGA fund though is a serious contender for many portfolios; thanks for highlighting its inception!]]> Sun, 28 Jan 2007 11:32:55 -0500
The new SSGA fund though is a serious contender for many portfolios; thanks for highlighting its inception!]]> http://seekingalpha.com/article/25129-bad-time-to-invest-in-mainland-china?source=feed#comment-80549 80549 Thu, 25 Jan 2007 12:24:06 -0500 http://seekingalpha.com/article/23186-comparing-china-s-two-oil-giants?source=feed#comment-79473 79473
SNP, because it is squeezed by price controls on retail sales of refined products and higher crude prices, currently receives a subsidy from the central government. PTR does not.

PTR's NG production is expanding rapidly, and the PRC is pushing for transition from coal to NG for environmental reasons. PTR, which also retails petrol(gasoline) and gasoil (diesel) and has a near monopoly on land based exploration, not only in China but in Kazakhstan and Uzbekistan, would seem to have the higher growth potential. Both are good companies, as is CNOOC (CEO) as well, but they are not all apples for comparative purposes.]]> Fri, 29 Dec 2006 18:26:21 -0500
SNP, because it is squeezed by price controls on retail sales of refined products and higher crude prices, currently receives a subsidy from the central government. PTR does not.

PTR's NG production is expanding rapidly, and the PRC is pushing for transition from coal to NG for environmental reasons. PTR, which also retails petrol(gasoline) and gasoil (diesel) and has a near monopoly on land based exploration, not only in China but in Kazakhstan and Uzbekistan, would seem to have the higher growth potential. Both are good companies, as is CNOOC (CEO) as well, but they are not all apples for comparative purposes.]]> http://seekingalpha.com/article/20796-h-q-life-science-hold-on-its-time-is-coming?source=feed#comment-75300 75300
More importantly, the Fink article fuzzes some issues of importance. The 8% yield is lauded, for example, even when it comes totally at the expense of capital appreciation. Iow, the fund must sell its winners to pay the distribution with proceeds from realized capital gains. If there is to be a resurgence in biotech and the investor wants to take full measure of that growth, truncating it for taxable current "income" doesn't make a lot of sense. Far better would be a fund which allows the winners to appreciate unharvested, at the expense of much lower payouts.

CEF like HQL cater to income oriented investors who, as has been mentioned earlier, subordinate total return opportunity to currrent gratification or need. This is particularly true on an after tax basis. They need to be valued in that context]]> Fri, 17 Nov 2006 19:15:13 -0500
More importantly, the Fink article fuzzes some issues of importance. The 8% yield is lauded, for example, even when it comes totally at the expense of capital appreciation. Iow, the fund must sell its winners to pay the distribution with proceeds from realized capital gains. If there is to be a resurgence in biotech and the investor wants to take full measure of that growth, truncating it for taxable current "income" doesn't make a lot of sense. Far better would be a fund which allows the winners to appreciate unharvested, at the expense of much lower payouts.

CEF like HQL cater to income oriented investors who, as has been mentioned earlier, subordinate total return opportunity to currrent gratification or need. This is particularly true on an after tax basis. They need to be valued in that context]]> http://seekingalpha.com/article/20047-a-long-short-etf-portfolio-for-emerging-markets?source=feed#comment-74288 74288 Sat, 11 Nov 2006 10:45:47 -0500