What keeps Close-ended-funds NAV in line with the share price?

Cabin111 said:
It happened this year to the Royce Family of Funds. RVT, RMT, RGT...I must have got 5 proxies (and 2 or 3 phone calls) each because of those stupid corporate raiders!! They hurt the value of the funds by having to defend their investment style. The funds are then unable to reinvest in opportunities that may arise in the markets. RGT usually would pay out 3-5 cents each year, at the end of the year. They would find value around the world and reinvest. Not this year...Did a pay out of $1.19 in December. They had delayed annual meetings and tons of $$ for the control of the funds. Really unfair to the investors. Same thing happened to PEO, that I own. Some raider named Bull Dog went after them. Buy, if you like their investment style...Sell, if you don't. But this should not be allowed to happen!! The paperwork hurt the shareholder's value...
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That's the big boy world unfortunately. Bull Dog was a shareholder as well and every shareholder gets a vote based on the number of shares they own. There are ways to set up your corporate structure to avoid this kind of thing or at least make it hard enough that it isn't worth it. At this point is almost negligence on the part of the fund managers that they didn't.
 
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