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Lewis Braham: Closed-End Funds Are Best For Today's Market
FYI: (Click On Article title At Top Of Google Search) Because closed-end funds don’t have to deal with lots of money flowing in and out of the portfolio, they’re better able to withstand choppy markets such as this. But many are poorly run—here’s how to find the best. Regards, Ted https://www.google.com/#q=Closed-End+Funds+are+Best+for+Today’s+Market+Barron's
Steve Romick managing a second fund along with FPACX. Maybe another reason that FPACX has not done well of late.
One promising example is Source Capital (SOR), which has historically traded at nearly a 10% discount. Its new manager, Steve Romick of FPA Crescent (FPACX), widely regarded as a top investor, will retain some level of the fund’s historical 4.5% distribution to keep the discount manageable.
@ Art ...Thanx for the tip. I will check SOR out. I find it interesting Romick spent considerable time in his recent commentary about junk funds which I translate to mean he considers them worthy of investment.
There have been some interesting recent articles written on CEF's performance. Some believe CEF's rebound much quicker than S&P500 during market crashes supposedly due to the yield they provide (some went to near 20% yields in 2008-2009) for a very brief moment in time at the depth of the panic selling.
One area I have often pondered (for those who bought those CEF near 15-20% yields) is why so many advisors recommend selling for cap gains (once rebounded) rather than simply holding for the 15-20% yields they provide as long as tolerable? Inference is they will outperform the S&P going forward. You run the risk of reinvesting the proceeds in some form of losing alternative investment.
Anyone know what source is available to determine what managers have skin in the game? M* covers a limited universe, don't know about Nuveen's database. Same question regarding existence of a distribution policy. Thx.
Comments
558 CEFs, only 70 insiders with $500K or more invested..... pathetic.
Regards,
Ted
One promising example is Source Capital (SOR), which has historically traded at nearly a 10% discount. Its new manager, Steve Romick of FPA Crescent (FPACX), widely regarded as a top investor, will retain some level of the fund’s historical 4.5% distribution to keep the discount manageable.
There have been some interesting recent articles written on CEF's performance. Some believe CEF's rebound much quicker than S&P500 during market crashes supposedly due to the yield they provide (some went to near 20% yields in 2008-2009) for a very brief moment in time at the depth of the panic selling.