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When I first wrote about the Dirty Dozen CEFs from 2021 back in November 2023, I was describing the miserable performance of the twelve closed end funds that did IPOs in 2021. In fact, at the time
ECAT: One Of The Dirty Dozen CEFs Now Yields 20% And Is A Buy Before The Discount Closes
Summary
- ECAT has shown strong performance, exceeding the S&P 500 total return in the past year, and now offers a 20% yield at market price while trading at a discount.
- The fund's strategy includes a mix of equities, fixed income, private investments, and options with a focus on ESG principles.
- Recent changes include a managed distribution policy of 20% of the previous month's NAV and a tender offer to reduce the discount.
- Activist pressure has led to actions closing the discount, making ECAT a compelling buy for high yield income before the discount vanishes.
Now retired, I am an income-oriented investor seeking high yield income to support my lifestyle in retirement.I became deeply interested in the stock market beginning in late 2007 (bad timing for me but worse for my uncle) when I received an unexpected inheritance. Since that time I have done considerable research and vowed to make smarter long-term investing decisions after suffering through the Great Recession with minimal losses to my inherited portfolio, after firing my financial advisor.I look for mostly dividend paying income stocks and funds (BDCs, REITs, CEFs, ETFs) that offer high yield income to increase my retirement income beyond my pension and Social Security. I also enjoy reading investment/financial and business information and following trends in technology and markets. The human psychology of markets is as fascinating and inscrutable to me as the financial side. I am not a financial advisor so please do your own due diligence before making any buy or sell decisions.“The race is not always to the swift, nor the battle to the strong, but that's the way to bet.” Damon Runyon
Analyst’s Disclosure: I/we have a beneficial long position in the shares of ECAT 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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