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EschCollection Thesis Six months ago, we started covering the AllianceBernstein Global High Income Fund (NYSE:AWF), assigning it a ‘Buy’ rating at the time on the back of an attractive discount to NAV profile and high corporate spreads. The fund has outperformed, delivering a total return exceeding 10%: Original Rating (Seeking Alpha) We are going to…
Jonathan Kitchen Written by Nick Ackerman, co-produced by Stanford Chemist. Nuveen Core Plus Impact Fund (NYSE:NPCT) provides investors with exposure to a diversified portfolio of mostly fixed-income investments. Since launching in 2021, the closed-end fund has been trading at a substantial discount to its net asset value per share. That isn’t too unheard of for…
PM Images Written by Nick Ackerman, co-produced by Stanford Chemist. The Gabelli Dividend & Income Trust (NYSE:GDV) is a closed-end fund that provides investors with a diversified portfolio of equities. The fund has a mostly value-oriented approach, with financials and healthcare as its largest sector exposure. However, you will still see a couple of mega-cap…
primeimages Looking for high yield income in the small cap sector? The Russell 2000 has suffered in the rising rate era, but, with rates expected to decline sometime in 2024, small caps could return to favor in the market. Royce Value Trust (NYSE:RVT) was the first small-cap closed-end fund, managed since its inception in 1986…
Martin Barraud Written by Nick Ackerman, co-produced by Stanford Chemist. The last time I touched on Voya Global Advantage and Premium Opportunity Fund (NYSE:IGA) was to discuss why I had added to my position. The primary driver was that the fund looked relatively attractive in terms of its relative discount being wider than its historical…
da-kuk Thesis China has been a hard hit jurisdiction this year when it comes down to stock performance. The Chinese Communist Party (‘CCP’) has taken a number of actions this year to stem the rout in Chinese equities and stimulate the local economy. Among these measures one can find cutting required bank reserves, issuing long-dated…
GrandviewGraphics/iStock via Getty Images ACRES Commercial Realty’s (NYSE:ACR) remarkable discount to its book value remains steep even after its 50% 1-year rally. The commercial mortgage REIT last reported a GAAP book value per share of $26.65 at the end of its fiscal 2023 fourth quarter, this was a sequential increase of $1.58 per share primarily…
jir Introduction Mastercard (NYSE:MA) is the world’s second largest payments network behind its rival Visa (V). Mastercard has near universal merchant acceptance with over 100 million acceptance locations globally. The firm is the consummate compounding stock, with a ten-year total return CAGR of 21.5%. The firm’s core payment network growth has slowed to a high-single…
anouchka Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it. – Albert Einstein After building my Income Compounder portfolio over the past several years, I am now reaping the rewards of my investments, just in time to support my retirement. I retired…
tampatra/iStock via Getty Images Written by Nick Ackerman, co-produced by Stanford Chemist. The Neuberger Berman Next Generation Connectivity Fund (NYSE:NBXG) is a fund focused on “next-generation mobile network connectivity and technology.” Thanks to its heavy tilt toward technology companies, the fund performed quite well in 2023, and 2024 is also looking quite promising. At the…
Richard Darko/iStock via Getty Images Introduction Many may be wondering how well BDCs will fare in 2024, with rates still expected to decline. I am a big believer in the sector and think they are more than just high interest rate environment investments. With the banking crisis roughly a year ago causing tighter lending standards,…
Bilanol Investment Thesis The American Water Works Company, Inc. (NYSE:AWK) is the largest publicly traded water utility in the United States. The utility provides water supply and wastewater management services to customers across the country through their regulated operations as well as servicing some military facilities too. AWK remains highly profitable and benefits from what…
JuSun Income stocks have largely missed out on the market rally over the past 6 months, and while it’s easy to get FOMO and want to chase high-flyers like Super Micro Computer (SMCI) or Nvidia (NVDA), I continue to prize real cash flows over paper gains on stocks with speculative valuations. Hence, I believe that…
Kobus Louw/E+ via Getty Images If you’re a concentrated investor like me, you’d want to pick the industry leader, rather than gain unnecessary exposure to lower-quality names. Booking Holdings (NASDAQ:BKNG) is one of the most prominent names in the online travel market, which I view as an attractive way to capitalize on the ever-growing demand…
Alexander Koerner The following segment was excerpted from this fund letter. Alphabet / Google (NASDAQ:GOOG,NASDAQ:GOOGL) In early 2023, we initiated an investment in Alphabet, the parent company of Google, at a highly attractive valuation during a period when apprehension about the company’s competitive positioning in AI overshadowed the high-quality nature of its business and strong…
champc Written by Nick Ackerman, co-produced by Stanford Chemist. BlackRock Enhanced Equity Dividend Fund (NYSE:BDJ) hasn’t moved too much since our last update near the end of December. The fund has provided some positive returns, but the discount has remained basically static during this time. That means it’s still trading near historically wide levels, and…
champc Written by Nick Ackerman, co-produced by Stanford Chemist. BlackRock Enhanced Equity Dividend Fund (NYSE:BDJ) hasn’t moved too much since our last update near the end of December. The fund has provided some positive returns, but the discount has remained basically static during this time. That means it’s still trading near historically wide levels, and…
JHVEPhoto/iStock Editorial via Getty Images Introduction I have a decent-sized long position in CT Real Estate Investment Trust (TSX:CRT.UN:CA) (OTC:CTRRF) as I like the Canadian REIT’s exposure to Canadian Tire (CTC.A:CA) (OTCPK:CDNAF) (OTCPK:CDNTF) which is where CT REIT was spun out off. Canadian Tire remains the REIT’s largest tenant, accounting for approximately 91% of the…
Dilok Klaisataporn The Nuveen S&P 500 Dynamic Overwrite Fund (NYSE:SPXX) invests in S&P 500 components and writes covered calls on 35% – 75% of its holdings. Doing so boosts the fund’s distribution yield to 7.6%, but moderately reduces potential capital gains. SPXX’s strategy seems reasonably sustainable, with fund distributions and NAVs seeing positive growth since…
wildpixel The main draw here is that recent spin-off Mural Oncology (NASDAQ:MURA) reported $275M in cash in their January 2024 investor presentation (as of Nov 1, 2023). That works out to approximately $16.47/share in cash, compared to a current stock price of $5.39/share. Now, the catch is that this is a biotech company investing in…
Liens Overview Yellow Cake (OTCQX:YLLXF) is an investment vehicle that owns physical uranium, with its primary listing in the UK. The stock has along with the Sprott Physical Uranium Trust (OTCPK:SRUUF) been one the better performing uranium stocks over the last year. I have over the last few years covered Yellow Cake frequently and I…
Natali_Mis/iStock via Getty Images The following segment was excerpted from this fund letter. Sotera Health Company (NASDAQ:SHC) In a vacuum, SHC screens as my ideal type of business: one half of a duopoly market with good long-term growth where the product sold is mission critical to customers, with high switching costs, yet the product’s cost…
Ivan-balvan/iStock via Getty Images The following segment was excerpted from this fund letter. Align Technology (NASDAQ:ALGN) After the sale of Markel in the fall, we used the proceeds to buy a 2% position in Align Technology in November. With Align Technology, our basis is just below $190 and it finished the year at $274, for…
3D Graphic Design/iStock via Getty Images Introduction I’m sure I speak for everyone when I say we all love a good sale. Especially when some of your favorite stocks are selling at a discount. With interest rates remaining high for the foreseeable future, it’s not easy finding quality business development companies trading at attractive valuations….
champpixs Trading at a big discount to its portfolio’s value with a juicy yield, Barings BDC (NYSE:BBDC) looks like an option for risk-tolerant investors looking for yield. Company Profile BBDC is a business development company (“BDC”). It looks to invest in the debt and equity of middle-market companies that typically have EBITDA of between $15-150…
Brookfield is headquartered in Canada ssuni Brookfield Corporation (NYSE:BN)(TSX:BN:CA) is considered one of the most “complex” financial companies in the world. It consists of a holding company, on top of several wholly-owned subsidiaries, and some partially owned subsidiaries, one of which operates the company’s funds. It’s a confusing structure that has led some to feel…
Aerial_Views/iStock via Getty Images Alexander’s, Inc. (NYSE:ALX), founded in 1928 and headquartered in Paramus, NJ, is a REIT that owns, (re)develops, leases, and manages 5 retail properties in New York City through its manager, Vornado Realty Trust (VNO). The REIT’s operating performance is concerning and there are many risks here, with a potential dividend cut…
tadamichi Price relative to NAV is a key consideration for any investor considering a closed-end fund (“CEF”) investment. Currently, many CEFs are trading at historically wide discounts to NAV. There is significant debate amongst academics to explain why CEFs tend to trade at a discount to NAV. One theory is that substantial discounts to NAV…
imaginima The ClearBridge MLP and Midstream Total Return Fund (NYSE:CTR) is a closed-end fund that aims to provide investors with a very high level of current income and total returns. Midstream companies and especially master limited partnerships generally deliver a very high percentage of their total returns to investors in the form of direct payments…
pixeldigits Looking for a niche high-yield investment in the financial sector? ArrowMark Financial Corp. (NASDAQ:BANX) has been one of our core holdings since the inception of our portfolio, when it was known as StoneCastle Financial Corp. It’s a closed-end fund covering two unique niches – US community banks and regulatory capital securities. Community banks have…
Manuel Augusto Moreno/Moment via Getty Images I covered Fairfax India Holdings Corporation (OTCPK:FFXDF)(FIH.U:CA) (“Fairfax India”) about a year ago posing Fairfax India as a solid investment to provide investors with exposure to one of the largest emerging countries in the world that can yield fantastic returns in the long term. Since January 2023, from reviewing…
NurPhoto/NurPhoto via Getty Images While Wall Street has been betting that the Fed will start cutting rates in March 2024, Fed members have been pushing back on that theme. One sub-sector that benefited greatly from rising rates is the BDC sector, due to many BDC’s lending money at floating rates, but borrowing at fixed rates….
anouchka Thesis Gabelli Global Deal Fund (NYSE:GDL) is a closed-end fund that is part of famed value investor Mario Gabelli’s GAMCO investment complex. GDL has a long track record of outperforming its benchmark via expert management using a niche investment style. Despite strong performance, GDL trades at a 20% discount to NAV. GDL invests in…
Sean Pavone/iStock via Getty Images Buying stocks at a discount to their intrinsic value is great. For most sectors, establishing this value can sometimes be more art than science. Business development companies have operations built on originating investments with their balance sheet to earn investment income. Hence, their intrinsic value is tethered to net asset…
poco_bw/iStock via Getty Images Portman Ridge Finance (NASDAQ:PTMN) is a small externally managed business development company investing in middle market businesses using a range of financing structures from first lien loans to subordinated debt and equity co-investment. The BDC is broadly sector-neutral with investments in tech firms, food and beverage businesses, and pharmaceuticals. A fully…
cyano66 Thesis With the jobs report just out, and non-farm payrolls rising more than expected, treasury yields are yet again rising. The labor market continues to be more resilient than expected, and without a high unemployment rate the Fed has absolutely no reason to cut rates. The economy seems to be humming along, with no…
zetter/iStock via Getty Images I have been bullish the iShares MSCI Global Metals & Mining Producers ETF (BATS:PICK) since November 2022, and it has risen by over 30% in total return terms over this period. In my last article on the PICK in September I argued that the industrial metals complex appeared to be turning…
champpixs Written by Nick Ackerman, co-produced by Stanford Chemist. The closed-end fund space, thanks to its unique structural advantages and active management, can often lead to some interesting funds that can get rather niche. Sprott Focus Trust (NASDAQ:FUND), with perhaps the greatest ticker in the fund space of all time, is one of those funds….
William_Potter Introduction Last time I wrote on FS KKR Capital (NYSE:FSK) was back in August in an article titled, “The Road Ahead Looks Promising.” That was right before the BDC reported its Q2 earnings. Some time has passed since reporting Q3 earnings. So, I felt like it was time to take another look at them….
Luis Alvarez With the 2023 market behind us, we took a look at how two popular closed-end funds – the Liberty All-Star Equity Fund (NYSE:USA), and its sister CEF, the Liberty All-Star Growth Fund (ASG), have performed over the short and long term. This article also covers their current valuations, dividend yields, and holdings. Fund…
airdone Written by Nick Ackerman, co-produced by Stanford Chemist. We last covered Cohen & Steers Real Estate Opportunities and Income Fund (NYSE:RLTY) earlier this year. It was just as the risk-free Treasury Rates were beginning to surge. Interestingly enough, similar to how they did in 2022, they ended up peaking sometime in October. That said,…
MicroStockHub Thesis The New America High Income Fund (HYB) is a fixed income closed-end fund that we own and have covered before on the Seeking Alpha platform. The fund has a very long performance history, being in the market since 1988. The fund is conservatively run when it comes to leverage and quality of the…
francois-roux/iStock Editorial via Getty Images KKR Real Estate Finance (NYSE:KREF) is swapping hands at a 14% discount to book value per share of $16.29 as of the end of its fiscal 2023 third quarter. This discount has tightened materially from 28% since I last covered the mortgage REIT whose most recent quarterly cash dividend of…
Robert Way Vipshop (NYSE:VIPS) is a leading specialty online discount retailer in China. According to the company’s website, VIPS “offers high quality and popular branded products to consumers throughout China at a significant discount from retail prices. By providing special offers and deep discounts on branded products, the Company has pioneered the online discount retail…
skynesher Please note all $ figures in $CAD, not $USD, unless stated otherwise. Introduction I’m nowhere near the age of retirement, but I can’t deny that I love a good dividend paying stock. Dividends are great because they provide investors with stable, re-occurring streams of income paid out from the company’s cash flows. For retirees…
Nikada The Nuveen Preferred & Income Opportunities Fund (NYSE:JPC) is a CEF which seeks to provide investors with a high current level of income by investing in preferred securities and other high yield securities. I view the preferred securities market sector as one that investors should have exposure to given current high levels of yield,…
Torsten Asmus Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund (“CEF”) market activity from both the bottom-up – highlighting individual fund news and events – as well as the top-down – providing an overview of the broader market. We also try to provide some historical context as well…
phototechno My wife and I went out to dinner with friends earlier this week, and at one point the conversation turned to our friends’ desire to be home owners rather than renters. They came close at one point to buying, but would have meant changing their kids’ school, so they did not go through with…
iQoncept/iStock via Getty Images Investment Thesis OTC Markets Group (OTCQX:OTCM) has a strong competitive position in a particular niche, providing critical infrastructure to the U.S. and global financial markets. Its unique business has led to above-average returns since its IPO in 2009, driven by a highly profitable business model with impressive returns on capital, an…