If you didn't get in during December you missed the boat on the tax effect. They have all popped pretty nicely almost across the board. DVM is up about $.80 for first two days of the year. There just might be a little easy money left if you can find some laggards that aren't lagging for a reason. I'm sorry to see that the creator of this journal is not more active here.
Closed-end Fund Income Investing
- Thread starter El OchoCinco
- Start date
nice 2.75% pop in my largest cef holding today. BKT
Hamlet:
I am sorry I have been a little absent, it has been a little busy. I am trying to get some free time to grab some CEFs since I have idle cash freed up. I will be posting a more in the coming days.
I am sorry I have been a little absent, it has been a little busy. I am trying to get some free time to grab some CEFs since I have idle cash freed up. I will be posting a more in the coming days.
What? You have a life? I don't think you should need to apologize for that.
Kinda happy about that JPS buy
Wish I had bought more.I'm real interested in looking into:
EVV
BTF (berkshire hathaway at a 15% discount)
TY - have been thinking about this a lot, and like it for a buy and hold equity play. They really can't pay out dividends due to loss carry forward rules, so it becomes quite tax efficient in a taxable account. Just don't know anything about the new manager.
The neuberger funds are down on poison pill stuff to prevent fund arbitrage, so they won't likely improve their discount anytime soon as an aside.
Do any of you guys subscribe to the Herzfield newsletter? Any opinions on whether that is worth it?
i don't like stock cefs. unless there is a catalyst they almost always trade at a discount to nav. i think its better to use cefs as income and focus on cefs that have a dividend. that way you get paid to wait.
My only beef with most equity CEFs is that they pay dividends quarterly, or in rare cases, annually. I prefer the monthly dividend streams because I like to reinvest the money as I go along, I also think monthly are more consistent since it is planned out by the managers based on assets and therefore the yield is more reliable while quarterly it seems to change depending on how the quarter went, and the yields are usually way off on the quarterly since they usually take the last Q and annualize it.
As an alternative to pure equity CEFs, I like the convertible preferreds where you get the steady dividends AND capital appreciation when the stock underlying the preferred goes up as well. Kind of best of both worlds and such funds pay monthly. I am looking to pick a few up for this year with an eye to a better market than last year.
As an alternative to pure equity CEFs, I like the convertible preferreds where you get the steady dividends AND capital appreciation when the stock underlying the preferred goes up as well. Kind of best of both worlds and such funds pay monthly. I am looking to pick a few up for this year with an eye to a better market than last year.
Timely subject for me, don't know how I missed this thread before. I picked up some
CIK - CS Asset Mgmt Income Fund
price $3.81
disc. -10.17%
yield 9.40%
just yesterday. I wasn't thinking of tax loss selling when looking at their chart. I was trying to see a GM angle to it.
As for REIT CEFs, I've held
IGR - ING Global Real Estate
$17.01
-5.26%
8.10%
just since July. 60% US, 40% Int'l. I like that additional touch of diversification.
CIK - CS Asset Mgmt Income Fund
price $3.81
disc. -10.17%
yield 9.40%
just yesterday. I wasn't thinking of tax loss selling when looking at their chart. I was trying to see a GM angle to it.
As for REIT CEFs, I've held
IGR - ING Global Real Estate
$17.01
-5.26%
8.10%
just since July. 60% US, 40% Int'l. I like that additional touch of diversification.
Another candidate I am looking at this afternoon. This fund has a nice blend of common stocks, preferred stocks and corporate bonds for good income and intrafund diversification.
CSQ- Calamos Strategic Total Return Fund
Price: $13.71 (1/5/06)
NAV: $14.95
Disc. -8.29%
Yield: 8.53%.
According to Calamos, the portoflio is about 41% in common stock, 30% in convertible securities and 27% in high yield/corporate bonds. Good credit rating diversification as well with 31% investment grade and 40% B and below. (22% at BB).
Their fund summary as of NOV 2005 includes equity holdings such as Washington Mutual, Bristol Myers and Johnson and Johnson, Convertible Preferreds such as Ford Motor Capital Trust and Chubb Corp, and high yiled holdings such as At&T and Advanced Micro Devices- so some nice diversification. I also like the small overseas exposure of the fund (about 8% of assets).
WaMu is the funds largest holding at 3% and the top 10 holdings only make up about 15% of the fund.
The dividend has increased over the past year and the NAV has also moved higher. The discount was as high as -10% and has improved and I still think there is more room for the share price to grow. With interest rate hikes slowing down, the 32% leverage will not keep biting into the fund's income.
I like the mixing of the 3 types of securities together and the range of sectors the fund invests in. The discount could narrow as the fund's assets improve with a better year than last year. I do not expect a raging bull market but we can always do better than flat and that should help many of the common and preferred securities. Stabilization of rate hikes should also stop biting into the high yield portion of the portfolio and shrinking the margins on the leveraged assets.
So with a nice yield of 8.53% and a big discount which could move back towards its 5 - 6% range of the summer, I think total return for the year could push 10%. Risks are always present with common and preferreds so naturally in a lousy stock market or continued rising rate environment you will want to keep an eye on the price.
CSQ- Calamos Strategic Total Return Fund
Price: $13.71 (1/5/06)
NAV: $14.95
Disc. -8.29%
Yield: 8.53%.
According to Calamos, the portoflio is about 41% in common stock, 30% in convertible securities and 27% in high yield/corporate bonds. Good credit rating diversification as well with 31% investment grade and 40% B and below. (22% at BB).
Their fund summary as of NOV 2005 includes equity holdings such as Washington Mutual, Bristol Myers and Johnson and Johnson, Convertible Preferreds such as Ford Motor Capital Trust and Chubb Corp, and high yiled holdings such as At&T and Advanced Micro Devices- so some nice diversification. I also like the small overseas exposure of the fund (about 8% of assets).
WaMu is the funds largest holding at 3% and the top 10 holdings only make up about 15% of the fund.
The dividend has increased over the past year and the NAV has also moved higher. The discount was as high as -10% and has improved and I still think there is more room for the share price to grow. With interest rate hikes slowing down, the 32% leverage will not keep biting into the fund's income.
I like the mixing of the 3 types of securities together and the range of sectors the fund invests in. The discount could narrow as the fund's assets improve with a better year than last year. I do not expect a raging bull market but we can always do better than flat and that should help many of the common and preferred securities. Stabilization of rate hikes should also stop biting into the high yield portion of the portfolio and shrinking the margins on the leveraged assets.
So with a nice yield of 8.53% and a big discount which could move back towards its 5 - 6% range of the summer, I think total return for the year could push 10%. Risks are always present with common and preferreds so naturally in a lousy stock market or continued rising rate environment you will want to keep an eye on the price.