Closed End Funds - Advice?

[haha]

Quote:

Originally Posted by clifp Ha Ha I am curious about ADX, long track record low expense but what makes it special?

Nothing other than long record, low expenses, high quality blue chip holdings, and a discount that is higher than usual for it.

As most of my investing is research intensive, here I wanted a passive holding that I wouldn't have to think about. Also, there is real power over time in a large discount married to a low expense ratio.

Ha

[nwsteve]

Wanted to "restart" this thread to see what kind of wisdom about closed end funds, the current market debacle suggests. I did a quick run through of some utility closed end funds and saw a lot high discounts and attractive yields.
Given the overall market collapse, shouldn't high dividend, blue chip closed end funds at a discount be even more attractive??
Thanks for your expert input
nwsteve

[wildcat]

Quote:

Originally Posted by nwsteve Wanted to "restart" this thread to see what kind of wisdom about closed end funds, the current market debacle suggests. I did a quick run through of some utility closed end funds and saw a lot high discounts and attractive yields. Given the overall market collapse, shouldn't high dividend, blue chip closed end funds at a discount be even more attractive?? Thanks for your expert input nwsteve

Hi NWSteve. Not an expert but I will share what trends I have noticed or followed. Seems like CEF usually sell off at the end of the year and has been a good time to buy from my past experiences - maybe due to tax season - + throw in the volatility kicker you might be able to get some real good bargains.

There seem to be a lot of attractive discounts out there now.

Even muni CEFs have fallen dramatically and B Gross has recommended some not too long ago.

Bill Gates' Cascade investment vehicle has been buying huge amounts of Western Claymore Inflation Linked CEFs.

Blackrock has a couple dividend focused CEFs that offer low exp ratios, little to no leverage and are based on the Mergent Dividend list - BDV & BDT.

GIM - one that Brewer has recommended - is @ a discount for those looking for international fixed income exposure.

The one I still think is solid is SOR by FPA (First Pacific). Discount is now 10%+. The fund mgr has been doing some insider buys recently. They have avoided the financial sector completely pre-collapse and seem to be holding some pretty solid, growing companies. Nice thing also is that they post Q reports and share their analysis for buying each position. IMO you get a pretty good shop's investment guidance for a reasonable price as their active funds have exp ratios of 1.30+.