CLM And CRF: Rights Offerings Post-Mortem And What To Do Going Forward

Summary

  • The Cornerstone CEF rights offerings concluded and were a massive success (for managers).
  • Shareholders experience a small boost to NAV/share, but significant declines in share price over the rights offering period.
  • Our recommendation to avoid the funds during the rights offering period was again proven to be correct.
  • However, these funds don't necessarily have to be avoided at all times, here's what to do going forward.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

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Author's note: This analysis was part of our CEF Weekly Roundup release to Income Lab members on May 21, 2021, and data are from that date unless otherwise stated. Please check latest data before investing.

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This article was written by

20.06K Followers

Stanford Chemist is a scientific researcher by training. For the past decade he has been providing analysis and evidence-based ways of generating profitable investments with CEFs and ETFs. He leads the investing group CEF/ETF Income Laboratory.

Features of the service include: managed income portfolios (targeting safe and reliable ~8% yields) making use of high-yield opportunities in the CEF and ETF fund space. These are geared toward both active and passive investors of all experience levels. The vast majority of {CEF/ETF Income Laboratory} holdings are also monthly-payers, for faster compounding and steady income streams. Other features include 24/7 chat, and trade alerts.

Analyst’s 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.

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