Closed-End Funds: Screening For Potential Opportunites To Kick Off Q1 2025

(18min)

Summary

  • The closed-end fund space saw a significant narrowing of discounts throughout 2024 as equity markets charged higher and now discounts remain tight heading into 2025.
  • In particular, equity CEFs have seen significantly narrowed discounts along with taxable fixed-income, though municipal bond funds look relatively attractive after widening discounts in December.
  • We are screening for funds with the deepest discounts and widest z-scores to find potential buys and funds that may be getting a bit pricey as sell candidates.
  • We include a section for low or no-leverage funds with negative z-scores, which present potentially attractive opportunities, especially in uncertain markets moving forward.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

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Dilok Klaisataporn

Written by Nick Ackerman, co-produced by Stanford Chemist

We just came off of a strong 2024, but the market is always about looking forward to what new potential opportunities there might be. As we finished off near highs in

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This article was written by

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Nick Ackerman is a former financial advisor using his experience to provide coverage on closed-end funds and exchange-traded funds. Nick has previously held Series 7 and Series 66 licenses and has been investing personally for over 14 years.

He contributes to the investing group CEF/ETF Income Laboratory along with leader Stanford Chemist, and Juan de la Hoz and Dividend Seeker. They help members benefit from income and arbitrage strategies in CEFs and ETFs by providing expert-level research. The service includes: managed portfolios targeting safe 8%+ yields, actionable income and arbitrage recommendations, in-depth analysis of CEFs and ETFs, and a friendly community of over a thousand members looking for the best income ideas. These are geared towards both active and passive investors. The vast majority of their holdings are also monthly-payers, which is great for faster compounding as well as smoothing income streams. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BRW, DMA, BUI, EOS, BST 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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