Closed-end Fund Income Investing

Hi Everyone-this is my first post on ET.
I have found this thread very informative . Over the past two months I have started adding CEFs to my portfolio for monthly income. I used cefa.com and went thru all their asset classes and tried to locate funds that met the above noted criteria , e.g , at least 6% yeild ,monthly dividends etc. I now have about 15 funds.
Two "stop loss" methods have been proposed by optioncoach-exit when the price decline is greater than the yeild or eliminate the worst performer when the entire portfolio performance is negative in your selected time frame.
I have two questions :
1. If you eliminate a fund for the above reasons , at what point do you bring it , or its asset class ,back into the portfolio ?
2. Just curious- what "stop loss" method do people prefer and on what time frame-weekly , monthly ?
Thanks in advance for your thoughts and thanks to optioncoach for starting this thread-it answered a question I had for a long time.
wje3
 
Does anyone have any thoughts as to the current weakness across many CEF's.... Seems like the price drop started in the may-june timeframe and has continued down. A lot of CEF's just punched through support or multi year lows. I looked at news for quite a few CEF's and couldn't find anything substantial or consistent. I also listened to several conference calls with CEF investment managers. Nothing ... any thoughts would be welcome...

Thanks in advance

toucan
 
CEFs cover stocks, preferred stocks, bonds, convertibles, floating rates, private debt, international equity and bonds, real estate and many other categories. I cannot imagine that ALL CEFs are down with so many different sectors.

What exactly are you seeing?
 
Quote from optioncoach:

CEFs cover stocks, preferred stocks, bonds, convertibles, floating rates, private debt, international equity and bonds, real estate and many other categories. I cannot imagine that ALL CEFs are down with so many different sectors.

What exactly are you seeing?
More...
Yea, I'm taking a hit too: EFT, DDF, HIX, HVY, JFR, EVF. I've been averaging into FOF lately, its onsale a lot this week :D
 
Many "high yield" and "corporate" bond CEFs were killed because of yield spreads widening in the junk segment. Look at charts of HIX, FT etc. Some floating rate CEFs I was following also got caught up in the turmoil PHD PPR FRA.
 
makloda and gts... thanks for the input... any general thoughts as to why?

optioncoach.. I looked at the following categories...

loan participation
general mortgage
corporate high yield
equity income
global income
gen bond investment grade

most that I looked at are taking hits... is this a major change for CEF's... or change in market/economy that I am not seeing?

just a few examples are bhd, psy, bhy, pfn, evf, bhk, ark, ead, cik, hyv, duc, zif... but there are many more and I don't mean to pick on these... I have a scan that highlights drops over the last 2 months and am seeing many cef's dropping in price.


thanks again

toucan
 
Quote from toucan:

makloda and gts... thanks for the input... any general thoughts as to why?
More...
I assumed it was bond/interest rate/subprime loan related because the CEF's that I own were selling off long before the general market sell-off recently.
 
GTS... yes thats when i first started seeing the drop..

changes in bond/interest rate... high yield bonds cef's
subprime loan related... loan participation/mortage related cef's
jitters over stock dividends.. stock dividend cef's

but seemed across more than just these


toucan
 
if interest rates push up on concerns many leveraged funds could see a pinch in their income which would hit share price as well. could be another small factor depending on how the preferred shares of CEFs are viewed.
 
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