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GDL: Discounted Fund With Attractive Yield, But Probably Best To Avoid

Dec. 02, 2021 2:08 PM ETGabelli Global Deal Fund (GDL)13 Comments


  • GDL is a unique fund from the Gabelli lineup; this one focuses on "merger arbitrage transactions."
  • The fund is currently deeply discounted and carries a distribution yield of over 5%.
  • Despite the interesting nature of the fund and the typically attractive features of a CEF being present, this fund has performed poorly.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

Think ahead to get ahead

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Written by Nick Ackerman, co-produced by Stanford Chemist

The GDL Fund (NYSE:GDL) is a unique closed-end fund from Gabelli. Going off of the name alone doesn't give investors a real sense of what this fund is

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This article was written by

Nick Ackerman profile picture
Nick Ackerman is an avid student of the markets and has been investing in his own accounts for over 14 years. He is a former Financial Advisor and has previously qualified for holding Series 7 and Series 66 licenses. These licenses also specifically qualified him for the role of Registered Investment Adviser (RIA), i.e., he was registered as a fiduciary and could manage assets for a fee and give advice. Since then he has continued with his passion for investing through writing for Seeking Alpha, providing his knowledge, opinions, and insights of the investing world. His specific focus is on closed-end funds as an attractive way to achieve income as well as general financial planning strategies towards achieving one’s long term financial goals.


I provide my work regularly to CEF/ETF Income Laboratory with articles that have an exclusivity period, this is noted in such articles. CEF/ETF Income Laboratory is a Marketplace Service provided by Stanford Chemist, right here on Seeking Alpha.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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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Comments (13)

strougo profile picture
Now treasuries are yielding high and Gabelli buying more higher yielding Stk
Is your recommendation turning positive ?
Rich W. profile picture
An important factor regarding GLD is its anti-takeover provisions which make it difficult/impossible for an activist to reduce the discount,
Nick Ackerman profile picture
@Rich W. thank you for this, I wasn't aware! Do you have more details on this or where it can be found? That could be quite an interesting study to see if these sorts of terms are in other CEFs as well.
Limit buy GTC at 8 otherwise too rich
Eileen Dover profile picture
@EF Hutton Already at a 15% discount. Why wait for 8.00 if someone wants it (not me) ?
@Eileen Dover cause very risky still and 1/2 in bonds
jack kreg profile picture
Yep, very out there fund.
When I saw the symbol, I thought it was a Gold fund, so i searched CEF Connect for commidities and found 4 funds that own precious metals; gold silver and platinum, they seem to track the value of the metal, fine.
I was looking for fund that holds gold mining stocks, large, medium and small cap. Gold stocks in the 1-10 Billion market cap range look undervalued, further they are a nice way to play the Fed taper or not.
If the Fed does taper and the dollar strengthens, the stocks may do okay, because foreign investment will flow to higher yielding bonds and US with strong economy, this will not be good for gold stocks.
if the Fed does not taper, as I am betting, gold and gold stocks will appreciate, as the dollar will weaken, and speculators will want to hold gold instead of traditional dollar assets: stocks and bonds.
In any case, gold stocks are valued in the 10-20 PE range and have historically low debt to cash flow ratios, so if gold appreciates, these stocks will do well.
Nick Ackerman profile picture
@jack kreg thanks for your thoughts! ASA invests in miners but isn't really an income play, though it has some of that exposure you touch on.
"In general, I believe it is a bad idea to hold any Treasuries in a closed-end fund structure for extended periods."

You got that right. Good for estates and trusts with p*ss poor rates.
I avoid all Gabelli funds like they're Covid
Nick Ackerman profile picture
@outlook69 I'm long GDV and ECF, I have also owned BCV and GAB in the past.
Eileen Dover profile picture
@outlook69 There are plenty more like us out there !
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