Preface: Every six months it’s time to review the previous 12 months of Joe Eqcome’s closed end fund (CEF) research to determine what’s working, what’s not, and why?
Research Reviewed: Since October of 2008, there have been 16 articles written by Joe that had associated investment recommendations. (Most, if not all, have been posted on Seeking Alpha.) Thirteen articles focused on equity-oriented CEFs and three focused on debt-oriented CEFs.
Closed-end funds (CEFs) that invest in large cap stocks have materially underperformed the Russell 1000 (Large Cap) Index over the past stock market cycle as measured by the ETF iShares Russell 1000 Index Fund (IWB). Additionally, the sector portfolio holdings of the three CEFs that invest in large cap stocks don’t appear materially different than that of the large cap ETF (IWB). (See table below).
Case Closed: This is a logical conclusion given the advantages of a large ...
Summary:Lower share price closed-end funds (CEF) have a significant price appreciation advantage relative to higher share price CEFs in a stock market recovery. Current beneficiaries may include: BLU, CIK, ASG, ZF, USA and ZTR (see table).
The chart below illustrates the top and bottom share price quartiles of a sample of 121 CEFs based on share price...
CEF Weekly Fund Type and YTD Price Changes (1/30/09)
Summary: Closed end funds (CEFs) on average continued to outpace the market for the final week of January. This performance was led by fixed income funds which make up the bulk of the CEF market sector. The preferred funds bounced back from the previous week (down 4.89%) as fears of the banking system being nationalized lifted. High yield funds continued to show strength the past week, possibly indicating investors’ confidence that the debt credit markets may slowly be returning. Special equity funds (SpecEqFnds) demonstrated a solid advance driven by the...
Summary: Many closed end fund (CEF) investors look at the current share price premium/discount relative to a CEF’s historical average prem/disc as a predictive investment tool. The thinking is that over time the current prem/disc should gravitate towards its historical average prem/disc. As a result, the greater the deviation from the historical average prem/disc, the greater the potential relative share price appreciation in re-establishing that relationship. Five CEFs with the greatest deviations from their historical prem/disc offer investors the potential of an average price...
(EMAILWIRE.COM, June 01, 2010 ) Boston ? BankAtlantic Bancorp, Inc. (NYSE: BBX) traded with mixed sentiments in its lat trading session and closed at $1.95 with overall volume of 29,728 shares for ...
BELLUS Health (TSX: BLU) and Celtic Therapeutics announced today that they have signed a final agreement pursuant to which Celtic Therapeutics will acquire and license worldwide rights related to ...
Now that health-care reform is in the books, Congress has turned its attention to banking reform. Large banks were at the center of 2008's financial crisis, which put the world banking system at ...
By Chip Brian Shares of Blue Chip Value Fund (NYSE:BLU) traded at a new 52-week high yesterday, touching a price of $3.44. Approximately 79,000 shares have traded hands today vs. average 30-day ...
BELLUS Health Inc. (TSX: BLU) ("BELLUS Health" or the "Company") announced today that, on March 30, 2010, the Company initiated a Phase I clinical study for NRM8499, a prodrug of tramiprosate ...
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