GLO: Likely Unsustainable Yield

Macrotips Trading
5.98K Followers

Summary

  • The GLO fund invests in global equity and bond securities.
  • The fund is managed by star-manager, Charles Clough, who was formerly a top-ranked strategist at Merrill Lynch.
  • With poor macro calls, the GLO fund has vastly underperformed in 2022.
  • The distribution looks at risk, as it looks unsustainable with poor investment performance.

glass globe and money

PonyWang

The Clough Global Opportunities Fund (NYSE:GLO) relies heavily on its 'star manager' to make differentiated macro calls. Unfortunately, those calls proved to be wrong in 2022, leading to abysmal short-term performance. Although the yield looks attractive at 19.8%, there is a significant risk the

This article was written by

5.98K Followers
Author of the Macro Trends & Inflection Points Newsletter. I spent 5 years as a co-founder and hedge fund CIO / manager. Before that, I was a hedge fund analyst/portfolio manager at a leading Canadian alternative asset manager. I write articles as part of my own due diligence on the stocks that I find interesting.

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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