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Equity CEF Performances: Updated Through July 29th, 2022



  • In the last Equity CEF Performance update, I called the prior week a "good" week. This week, I will upgrade that to a "VERY good" week, particularly for leveraged CEFs.
  • With the S&P 500 gaining +4.3% on the week and the NASDAQ-100 +4.5%, those strong moves actually paled in comparison to some equity CEFs.
  • How about Buy rated funds like ETO, up +15.2% for the week, or ETG up +8.3%. Heck even some technology focused CEFs like BST were up +6.4% for the week.
  • Generally speaking, though, leveraged equity CEFs tended to outperform, particularly among energy & infrastructure names like NRGX up +7.0% and MGU up +5.5% for the week.
  • The more defensive option-income funds lagged a bit, but overall, it was a very good week for all CEFs, even bond CEFs. Does this mean we are seeing a new bull market?  Well, not so fast.
  • Looking for a helping hand in the market? Members of CEFs: Income + Opportunity get exclusive ideas and guidance to navigate any climate. Learn More »

Bull and bear market


** As I've done for the past several months, I am making my last of the month SUBSCRIBER ONLY Equity CEF Performance update from July 29th available to the general Seeking Alpha audience.

I think you'll find my

Thank you for reading my article. My goal is to give you observations and actionable ideas in Closed-End funds while educating you on how these unique and opportunistic funds work.

CEFs can be one of the most exhilarating and yet most frustrating security classes to invest in, and it's important that you have someone who can be a level head during up and down periods of the market. I hope to be that voice of calm when necessary.  ~ Douglas Albo

This article was written by

Douglas Albo profile picture

Douglas Albo has been a financial professional for 20+ years and a registered investment advisor over a decade. His background includes several years at Smith Barney and Morgan Stanley. He has been covering equity CEFs on Seeking Alpha for well over a decade as well.

Douglas is the leader of the investing group CEFs: Income + Opportunity where he provides coverage of the best ideas in equity CEFs. Features of the group include: analysis of tax-advantaged distribution funds, real time trading alerts and ideas, weekly performance spreadsheets, a portfolio guide updated every 2 weeks, and chat for dialogue and questions. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ETO, ETG, NRGX, SRV, BGR, BST, MGU, MFD, SPY, QQQ, SDS, TEM, NZF either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (17)

labard profile picture
Do you still like AIO?
Douglas Albo profile picture
@labard I do. The fund is much more diversified than just technology and considering the fund got started with a $20 NAV in October of 2019, before the pandemic and before the technology wipeout, that's very impressive when you plug back all the distributions and capital gain distributions of $3.45 in 2021 and $1.16 in 2020.
labard profile picture
@Douglas Albo Thank you for your reply. Appreciate your articles and comments.
Douglas Albo profile picture
@labard Oh, and I meant to say that AIO's current NAV is $20.63 even after all of those distributions and capital gains. Still well over its $20 NAV initiation price.
bobofran3726 profile picture
ETO is one of my larger positions and as a retiree, the monthly income from it is great. I've never sold any, I hate making Uncle Sam a partner and if I have spare powder, I add on the pull backs.

Always look forward to your informative articles. Thanks
What do you make of the astounding pricing of ETO with it now trading at a 15.57% premium? That seems ridiculously unsustainable.
Douglas Albo profile picture
@TimNeuman As I said to my subscribers yesterday when I suggested to sell some shares, this is not the first time I've seen ETO make this kind of a move. ETO is a relatively small fund for Eaton Vance and is prone to spikes up and down. But yes, yesterday was a good opportunity to sell some shares.
morl333 profile picture
Why would you not mention CLM and you are not long on the best CEF there is?
Douglas Albo profile picture
@morl333 I have very large positions in both CLM & CRF and the funds have been doing exactly what I said they would do. But that was 6-weeks ago and there really hasn't been a reason to write on them recently other than maybe gloating on their performance I guess.
@morl333 I don't see anything to like about CLM. The NAV has been in a steady decline since 2004.
Douglas Albo profile picture
@RD1300 You can't apply normal fund valuations or analysis with the Cornerstone funds. They are completely unique. They 'offer' 21% annual NAV distributions that you can re-invest at NAV, even if the MKT price goes to a 50% premium, like it did earlier this year. The strategy then is to sell around high premiums, usually ahead of a Rights Offering and buy back after the Rights Offering when the valuation falls. Just remember to reinvest those large distributions, otherwise the strategy doesn't work.
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