FEN And FEI: The Trade Is Now Done

Summary

  • We had three funds that were different in name only.
  • Moving between them was based primarily on where they traded relative to NAV.
  • Investors chasing one name at the expense of others paid a heavy price in terms of performance.
  • The trade is now done, we look at where we go next.
  • Conservative Income Portfolio members get exclusive access to our real-world portfolio. See all our investments here »

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When we last covered First Trust MLP & Energy Income Fund (FEI) and its sibling fund, First Trust Energy Income & Growth Fund (FEN), we had a clear trade idea for the bold.

The case to

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This article was written by

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Trapping Value is a team of analysts with over 40 years of combined experience generating options income while also focusing on capital preservation. They run the investing group Conservative Income Portfolio in partnership with Preferred Stock Trader. The investing group features two income-generating portfolios and a bond ladder.

Trapping Value provides Covered Calls, and Preferred Stock Trader covers Fixed Income. The Covered Calls Portfolio is designed to provide lower volatility income investing with a focus on capital preservation. The fixed income portfolio focuses on buying securities with high income potential and heavy undervaluation relative to comparatives. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of KMI 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.

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