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New Herzfeld MF and Discussion of CEFs

edited February 2013 in Fund Discussions
Link below to an interesting article about Herzfeld's new fund, previously mentioned in the Snowball Three-Fund discussion. One thing you can be sure of with Thomas Herzfeld is that he knows the value of the shareholder's dollar: take a look at the ER for his fund-of-funds! Subscriptions to his CEF service are also very pricey. Very good points about CEFs in the article with references to the right people at M* for further info. I held RNCOX for a time and sold it, principally because of its high ER.


  • Reply to @BenWP: His centerpiece fund is CUBA that is up 16% YTD with a 2.68% expense ratio.
    M* Snapshot CUBA:
  • Reply to @BenWP: from the linked article:
    "For example, his mutual fund owns shares of Alpine Total Dynamic Dividend Fund (AOD +0.25%, news), a closed-end stock fund that trades at a 13% discount to its NAV, compared with an average discount of about 1% over the past three years. Alpine recently hit the slopes because it cut its "distribution rate," a kind of payout to investors. But the current discount is likely to narrow and return closer to those historical levels of around 1%, meaning the shares should rise from here."
    Good luck to those who expects a 1% discount. AOD have distributed its NAV back to its investors since 2007 (ipo'd @ over $19, is now $4.69). negative 12% 5 year annual return on price and negative 7% 3year return (when the market went up). One is better off putting money in the sock drawer and taking a fixed amount of it every month -- at least it would save 1.27 management fee for AOD and the fund of funds fees and loads Herzfeld is charging on top.
  • I have enjoyed seeing Mr. Herzfeld interviewed on NBR on PBS, but instead of contributing to Mr. Herzfeld, I send money to my PBS TV station from which I always get a positive return.
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