NBXG: A Good Way To Buy Technology At A Discount

(11min)

Summary

  • Neuberger Berman Next Generation Connectivity Fund Inc went public in May 2021, and had poor performance in 2022.
  • The fund's top ten holdings shifted from high-growth companies with very high valuations to more mainstream larger-cap technology issues by May 31, 2024.
  • Despite poor 3-year performance, recent improvements, activist involvement, and potential discount narrowing make NBXG worth considering for exposure to the tech and communications sectors.
  • The fund's distribution yield is 9.4%.
  • Looking for a helping hand in the market? Members of Yield Hunting: Alt Inc Opps get exclusive ideas and guidance to navigate any climate. Learn More »

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The Neuberger Berman Next Generation Connectivity Fund Inc (NYSE:NBXG) chose a bad time to go public, in May 2021. It came out at $20 and traded sideways for a while even after covering its distributions, but then got hit very hard

George is a contributor to the investing group Yield Hunting: Alternative Income Opportunities, a premium service dedicated to income investors who are searching for yield without the high risk of the equity market. The group manages four portfolios with a range of yield targets, a monthly newsletter, weekly commentary, rankings of CEFs based on yield, trade alerts, and access to chat for questions. Learn more.

This article was written by

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George Spritzer, CFA is a registered investment advisor who specializes in managing closed-end funds for individuals. George also shares his understanding of how to profit from investing with special situations as a catalyst.

George is a contributor to the investing group Yield Hunting: Alt Inc Opps, a premium service dedicated to income investors who are searching for yield without the high risk of the equity market. The group manages four portfolios with a range of yield targets, a monthly newsletter, weekly commentary, rankings of CEFs based on yield, trade alerts, and access to chat for questions. Learn more.

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