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1Q 2024 Closed-End Fund & BDC Review and Outlook April 24, 2024 John Cole Scott, CFS President & Chief Investment Officer Daniel Silver, CFA Portfolio Manager CEFadvisors.com
Good timing. Sold CEFS & bought FOF yesterday in my core account. Head swimming from all the recent reading. Not easy creatures to fathom or to value. And, I’m not particularly optimistic about the new acquisition. But it does serve purpose of providing broader portfolio diversification which I value.
A note on CEFS: This one is actually an ETF that invests in CEFs and is run by run by hedge fund manager Boaz Weinstein, an activist. While its near 5% fee looks daunting, most of that is in acquired fund fees and borrowing costs. Uses leverage (on top of the leverage in the CEFS owned). Actual management fee is around 1%. Not recommending it. As noted, I no longer own.
Calimos’ brand new CCEF (also an ETF) is also worth a look for folks wanting exposure to a broad basket of CEFs.
I have a small rider on activist Boaz Weinstein's ETF of CEFs with ticker CEFS. He has been quite successful against big firms. Be careful punching tickers as CEF is something else - a Canadian gold/silver bullion CEF. Why does the SEC approve these confusing tickers?
@rforno … it was really interesting with a lot of good information. Examining the heatmap, personally, I’m hoping for a rebound for REITs, and have a big bet on RQI for a down payment in 2 years to buy out my auto lease.
One item was not helpful…on the “Taxable Equivalent Yield Comparison” table, they used an example for a married couple with combined W-2 income of 1MM+…since my tax status is “single“, that was of no help.
@rforno … it was really interesting with a lot of good information. Examining the heatmap, personally, I’m hoping for a rebound for REITs, and have a big bet on RQI for a down payment in 2 years to buy out my auto lease.
One item was not helpful…on the “Taxable Equivalent Yield Comparison” table, they used an example for a married couple with combined W-2 income of 1MM+…since my tax status is “single“, that was of no help.
Same for me. Just divide the numbers by 2 and you can get a rough idea for yourself.
Comments
A note on CEFS: This one is actually an ETF that invests in CEFs and is run by run by hedge fund manager Boaz Weinstein, an activist. While its near 5% fee looks daunting, most of that is in acquired fund fees and borrowing costs. Uses leverage (on top of the leverage in the CEFS owned). Actual management fee is around 1%. Not recommending it. As noted, I no longer own.
Calimos’ brand new CCEF (also an ETF) is also worth a look for folks wanting exposure to a broad basket of CEFs.
Be careful punching tickers as CEF is something else - a Canadian gold/silver bullion CEF.
Why does the SEC approve these confusing tickers?
One item was not helpful…on the “Taxable Equivalent Yield Comparison” table, they used an example for a married couple with combined W-2 income of 1MM+…since my tax status is “single“, that was of no help.