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I recently wrote about the Saba Capital Income & Opportunities Fund (BRW) which traded at around an 8% discount at the time. That discount has narrowed some to 6.96%. This fund has a “twin” called the
SABA: A Hidden Gem With Nearly 10% Distribution Yield And A Generous Discount
Summary
- Saba Capital Income & Opportunities Fund II and BRW offer attractive discounts and potential for high returns, especially in volatile markets.
- Saba's activist approach means it is acutely aware of the importance of managing discounts to net asset value for CEFs.
- Both funds incorporate hedge-fund strategies, with significant cash positions and short positions in sovereign debt, positioning them well for high interest rate environments.
- SABA appears more promising than BRW currently, with potential for special dividends and benefits from CEF-activism, making it a strong investment within the closed-end fund universe.
Bram de Haas brings 15 years of investing experience to the table and has over 5 years of experience managing a Euro hedge fund. He is also a former professional poker player and utilizes his bundle of risk management skills to uncover lucrative investments based on special situations.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of BRW, SABA 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.
I'm considering shifting all my BRW into SABA depending how prices shift.
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