'Black Monday 2018' Biggest CEF Gainers And Losers

|
Includes: AGD, BBN, BCX, BGR, BKT, BSD, BSE, BST, BUI, CBA, CCD, CEF, CEN, CGO, CHI, CHW, CHY, CSQ, CTR, DBL, DIAX, DUC, ECF, EHI, EHT, EOD, ERH, FDEU, FEO, FGB, FMO, GAM, GBAB, GF, GLQ, GLU, GMZ, GPM, GUT, HEQ, IDE, IHD, IHIT, IID, IIF, INF, JHS, JMF, KF, MGU, MIE, MXE, MZA, NBB, NBD, NCZ, NDP, PEO, PGZ, PHYS, PSLV, QQQX, RCG, RCS, RIF, TDF, TWN, VMM, ZTR
by: Stanford Chemist
Summary

Black Monday 2018" saw widespread and indiscriminate selling in CEFs.

Top CEF gainers and losers in terms of premium/discount are presented.

Top CEF gainers and losers in terms of share price and NAV are presented.

"Black Monday 2018" saw widespread and indiscriminate selling in CEFs. As mentioned in "Exploiting ETN/CEF Illiquidity - Playbook For Tomorrow", this panic selling can trigger dislocations in the price of securities that can be exploited by the nimble investor.

With CEFConnect NAV figures finally being updated as of Tuesday morning, I can finally present the top CEF gainers and losers from Monday.

Biggest premium/discount losers

Here the top 25 funds where the share price drop exceeded the NAV decline yesterday. In other words, these are buy candidates as their discounts have widened significantly. This data is arranged in increasing order of difference, so the best buy candidates are near the top. The graph below the table shows the top 10 only. Note that all z-scores indicate 1-year z-scores.

Fund Ticker Change SP Change NAV Difference Yield Discount z-score
First Trust/Aberdeen Emerging (FEO) -7.27% -1.51% -5.76% 9.00% -14.84% -2.7
Calamos Dynamic Conv & Income (CCD) -6.72% -1.30% -5.42% 10.86% -10.21% -4.4
Nuveen NASDAQ 100 Dynamic Over (QQQX) -8.97% -4.16% -4.80% 6.72% -2.35% -2.0
Calamos Convertible & High (CHY) -5.74% -1.18% -4.56% 10.75% -4.70% -2.6
Wells Fargo Adv Util & High In (ERH) -6.04% -1.50% -4.54% 7.82% -7.55% -4.6
Calamos Convertible Opps & Inc (CHI) -5.18% -1.07% -4.11% 10.90% -5.77% -4.0
Voya Infrastructure Ind & Mat (IDE) -7.46% -3.61% -3.85% 7.60% -6.27% -0.2
Calamos Global Total Return (CGO) -7.05% -3.30% -3.75% 8.71% 2.07% 0.0
BlackRock Science and Technolo (BST) -6.98% -3.35% -3.64% 5.89% -6.29% 0.5
Invesco High Inc 2024 Tgt Term (NYSE:IHTA) -3.28% 0.31% -3.58% 5.93% -3.47% 0.0
New Germany Fund (GF) -4.80% -1.52% -3.27% 3.85% -12.23% -0.2
Principal Real Estate Inc Fund (PGZ) -3.83% -0.72% -3.10% 8.08% -15.12% -2.2
Ellsworth Growth and Income (ECF) -5.67% -2.58% -3.09% 4.99% -13.44% -2.0
Calamos Strategic Total Return (CSQ) -6.28% -3.20% -3.07% 8.61% -11.47% -3.3
Western Asset Global High Inc (EHI) -3.42% -0.36% -3.07% 7.95% -13.76% -4.6
Voya Emerging Market High Div. (IHD) -4.56% -1.58% -2.98% 8.22% -9.91% -0.4
Calamos Global Dynamic Income (CHW) -5.81% -2.84% -2.96% 9.59% -5.09% -0.4
Mexico Equity & Income (MXE) -3.57% -0.70% -2.87% 0.44% -15.69% -1.9
BlackRock MuniYield Arizona (MZA) -2.93% -0.07% -2.86% 4.64% 13.33% 1.3
Wells Fargo Adv Glo Div Opp (EOD) -4.74% -1.90% -2.84% 11.60% -9.19% -0.3
JH Hedged Equity & Income Fund (HEQ) -5.18% -2.42% -2.76% 9.29% -6.47% -2.2
AGIC Convertible & Income II (NCZ) -3.89% -1.17% -2.72% 11.64% 0.68% -1.3
Templeton Dragon Fund (TDF) -4.83% -2.18% -2.65% 8.42% -15.19% 0.4
EV High Inc 2021 Target Term (EHT) -2.84% -0.20% -2.65% 6.27% -5.81% -6.0
Voya Intl High Div Equity Inc (IID) -5.59% -2.96% -2.63% 9.00% -4.02% -1.8

(Source: Stanford Chemist, CEFConnect)

EHT looks very interesting as it is a 2021 target term fund like JHB which I've recently profiled, and trades at a discount of -5.81%. (For reference, JHB's discount is -5.65% currently). Yesterday, EHT dropped -2.84% but its NAV fell only -0.20%. JHB dropped -1.45% but its NAV fell only -0.20% (same as EHT).

Both EHT and JHB represent excellent entry points in my opinion with annual alpha available until liquidation nearing 1.5%. Their 1-year z-scores are -6.0 for EHT and -4.4 for JHB.

EHI also looks interesting with a 7.95% yield, -13.76% discount and -4.6 z-score.

Biggest premium/discount gainers

Here the top 25 funds where the NAV drop exceeded the share price drop yesterday. In other words, these are sell candidates as their discounts have narrowed significantly. This data is arranged in increasing order of difference, so the best sell candidates are near the bottom.

Fund Ticker Change SP Change NAV Difference Yield Discount z-score
MS India Investment (IIF) -2.49% -4.54% 2.04% 4.65% -12.04% -0.3
RMR Real Estate Income Fund (RIF) -2.01% -4.10% 2.09% 7.97% -17.61% 0.0
RENN Glb. Entrepreneurs Fund (RCG) 1.43% -0.69% 2.13% % -1.41% 1.0
Clough Global Equity (GLQ) -1.59% -3.72% 2.13% 10.68% -5.87% 1.0
Nuveen Energy MLP Total Return (JMF) -4.04% -6.29% 2.25% 10.54% -3.23% -1.3
Fid/Claymore MLP Opportunity (FMO) -3.10% -5.40% 2.30% 12.53% 0.66% -0.3
Virtus Global Div & Inc Fund (ZTR) -1.72% -4.07% 2.35% 10.78% 6.70% 1.6
Tortoise Energy Independence F (NDP) -0.99% -3.40% 2.40% 13.47% 3.75% 0.5
BlackRock Resources & Commdty (BCX) -3.81% -6.35% 2.54% 6.62% -8.15% 2.3
ClearBridge Energy MLP TR Fund (CTR) -2.55% -5.31% 2.76% 9.48% -3.40% 1.7
Adams Natural Resources (PEO) -4.84% -7.61% 2.78% 2.65% -15.41% -1.3
Sprott Physical Silver Trust (PSLV) 0.16% -2.77% 2.93% % -2.85% -3.5
BlackRock Util, Infra & Power (BUI) 0.72% -2.22% 2.94% 6.90% 3.90% 3.7
Center Coast MLP & Infras (CEN) -2.94% -5.90% 2.97% 12.21% 0.39% -0.3
Alpine Global Dynamic Dividend (AGD) -0.55% -3.64% 3.09% 7.13% -6.17% 2.4
Korea Fund (KF) -2.43% -5.59% 3.17% 0.55% -10.00% 1.9
Gabelli Global Utility & Inc (GLU) -0.92% -4.26% 3.34% 5.67% 0.11% 3.6
Taiwan Fund (TWN) -1.17% -4.56% 3.39% 3.13% -9.94% 2.6
First Trust Specialty Finance (FGB) -0.33% -3.82% 3.49% 11.74% 2.94% 0.6
Gabelli Utility Trust (GUT) 0.28% -3.37% 3.65% 8.46% 45.29% 3.9
General American Investors (GAM) -3.55% -7.23% 3.68% 2.91% -15.09% 1.1
BlackRock Energy & Resources (BGR) -3.55% -7.35% 3.80% 6.72% -6.85% 3.2
ClearBridge Amer Energy MLP (CBA) -2.66% -6.56% 3.90% 9.11% -0.57% 3.3
Goldman Sachs MLP Income Opps (GMZ) -2.64% -6.54% 3.90% 9.11% -6.49% -0.6
Brookfield Glo List Infr Inc (INF) -1.76% -6.64% 4.88% 7.64% -8.75% 2.0

(Source: Stanford Chemist, CEFConnect)

I simply have to draw attention to GUT once again, an egregiously overvalued fund. Its premium of +45.29% and z-score of +3.9 simply defies understanding, considering that a much superior fund is available in UTG. GUT's share price gained +0.28% yesterday even while its NAV declined by -3.37%.

BUI might also be a good candidate for locking in profits. Its share price gained +0.72% yesterday while its NAV fell by -2.22%. It has a 1-year z-score of +3.7.

Biggest share price gainers and losers

Not interested in premium and discount changes and just want to know the biggest share price gainers and losers? Here they are.

Top 10 share price losers

Fund Ticker Change SP Change NAV Difference Yield Discount z-score
Nuveen NASDAQ 100 Dynamic Over (QQQX) -8.97% -4.16% -4.80% 6.72% -2.35% -2.0
Voya Infrastructure Ind & Mat (IDE) -7.46% -3.61% -3.85% 7.60% -6.27% -0.2
First Trust/Aberdeen Emerging (FEO) -7.27% -1.51% -5.76% 9.00% -14.84% -2.7
Calamos Global Total Return (CGO) -7.05% -3.30% -3.75% 8.71% 2.07% 0.0
BlackRock Science and Technolo (BST) -6.98% -3.35% -3.64% 5.89% -6.29% 0.5
Calamos Dynamic Conv & Income (CCD) -6.72% -1.30% -5.42% 10.86% -10.21% -4.4
Nuveen Dow 30 Dynamic Overwrit (DIAX) -6.67% -4.72% -1.96% 6.34% -5.71% -0.3
First Trust Dynamic Europe Equ (FDEU) -6.45% -4.13% -2.32% 8.00% -4.78% 1.1
Calamos Strategic Total Return (CSQ) -6.28% -3.20% -3.07% 8.61% -11.47% -3.3
Guggenheim Enhanced Equity Inc (GPM) -6.24% -5.38% -0.86% 11.41% -2.44% 0.5

(Source: Stanford Chemist, CEFConnect)

Top 10 share price gainers

Fund Ticker Change SP Change NAV Difference Yield Discount z-score
Sprott Physical Gold & Silver (CEF) 0.23% -1.49% 1.72% 0.08% -3.75% 0.7
Nuveen Build America Bond Opp (NBD) 0.27% 0.26% 0.01% 5.16% -4.96% -1.0
Gabelli Utility Trust (GUT) 0.28% -3.37% 3.65% 8.46% 45.29% 3.9
Delaware MN Muni Income II (VMM) 0.31% -0.07% 0.38% 3.97% -10.07% -2.3
BlackRock NY Muni Inc Qty (BSE) 0.31% -0.07% 0.38% 4.36% -12.15% -1.9
Sprott Physical Gold Trust (PHYS) 0.55% -0.63% 1.19% 0% -0.64% -2.8
Nuveen Build America Bond (NBB) 0.62% 0.55% 0.07% 5.89% -4.42% -1.1
BlackRock Util, Infra & Power (BUI) 0.72% -2.22% 2.94% 6.90% 3.90% 3.7
BlackRock Strategic Muni (BSD) 0.76% -0.07% 0.83% 5.91% -7.05% -1.6
RENN Glb. Entrepreneurs Fund (RCG) 1.43% -0.69% 2.13% % -1.41% 1.0

(Source: Stanford Chemist, CEFConnect)

Biggest share price gainers and losers

In similar vein, here are the biggest NAV gainers and losers.

Top 10 NAV losers

Name Ticker Change SP Change NAV Difference Yield Premium/discount z-score
Adams Natural Resources (PEO) -4.84% -7.61% 2.78% 2.65% -15.41% -1.3
BlackRock Energy & Resources (BGR) -3.55% -7.35% 3.80% 6.72% -6.85% 3.2
General American Investors (GAM) -3.55% -7.23% 3.68% 2.91% -15.09% 1.1
Brookfield Glo List Infr Inc (INF) -1.76% -6.64% 4.88% 7.64% -8.75% 2.0
Macquarie Glb Infrast TR Fund (MGU) -5.24% -6.62% 1.38% 6.34% -10.10% 0.9
ClearBridge Amer Energy MLP (CBA) -2.66% -6.56% 3.90% 9.11% -0.57% 3.3
Goldman Sachs MLP Income Opps (GMZ) -2.64% -6.54% 3.90% 9.11% -6.49% -0.6
BlackRock Resources & Commdty (BCX) -3.81% -6.35% 2.54% 6.62% -8.15% 2.3
Nuveen Energy MLP Total Return (JMF) -4.04% -6.29% 2.25% 10.54% -3.23% -1.3
Cohen & Steers MLP Inc&Energy (MIE) -4.12% -6.01% 1.89% 9.03% -5.19% 1.2

(Source: Stanford Chemist, CEFConnect)

Top 10 NAV gainers

Fund Ticker Change SP Change NAV Difference Yield Discount z-score
Invesco High Inc 2024 Tgt Term (IHTA) -3.28% 0.31% -3.58% 5.93% -3.47% 0.0
BlackRock Income Trust (BKT) 0.17% 0.31% -0.14% 5.41% -9.26% -2.7
Duff Phelps Utility&Corp Bond (DUC) 0.11% 0.32% -0.20% 4.81% -8.10% -1.7
Guggenheim Taxable Muni Mng Du (GBAB) -0.33% 0.39% -0.72% 7.08% -7.11% -3.4
PIMCO Strategic Income Fund (RCS) -1.43% 0.40% -1.83% 9.64% 17.59% -1.0
JH Income Securities (JHS) -0.61% 0.40% -1.01% 5.95% -3.30% 1.6
Invesco High Income 2023 Targe (IHIT) -1.12% 0.50% -1.62% 6.17% -3.18% -2.5
Nuveen Build America Bond (NBB) 0.62% 0.55% 0.07% 5.89% -4.42% -1.1
BlackRock Taxable Muni Bond (BBN) -0.36% 0.69% -1.05% 7.19% -6.22% -3.3
Doubleline Opportunistic Cred (DBL) -0.92% 1.05% -1.97% 9.33% 1.32% -1.7

(Source: Stanford Chemist, CEFConnect)

Summary

CEFs are not the most liquid instruments out there. When indiscriminate buying or selling occurs, it pays to be nimble and take advantage of any price dislocations you can spot. I hope this data has been useful in helping to identify such opportunities.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am long the portfolio securities.