CEF Holdings --- May 2026
- Thread starter dickoncapecod
- Start date
PaulR888
Recycles dryer sheets
Hi DrVenture .... I remember your name from a previous forum and my memories are with fondness. So, I am curious about the love I see on this site for EGRIX. As I do a quick review, it has 14% stocks mostly foreign which probably contributes to its 20% TR over last year, no significant exposure to traditional core or core+ bond asset classes, significant exposure to foreign currencies and interest rates. Long and short positions is soverigns. And finally Fidelity shows Net ER 2.22%. Morningstar shows Net ER 1.05%. Not sure which is right. So my question is, would you share your thinking and strategy on the position this fund plays in what I am guessing would be the core bond portion of your portfolio. How many and what types of other core bond funds do you own? Thank you Dr.Venture. Nice to meet you again.
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
GOF flat though. PDI taking it in the shorts.
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dickoncapecod
Thinks s/he gets paid by the post
Hi. Methinks PDI is the narrative/mood thermometer because of its size and exceptional liquidity. GOF goes ex- on Friday, so we shall see how that goes, but I find it hard to sell 19% assets.
Regards, Dick
stefansm
Recycles dryer sheets
I think it is important and helpful, for investors who do not want to trade or time the market, and want mostly a buy an hold CEF portfolio, to show this "all weather" portfolio and its performance over a long term.
This is a very simple, mechanical portfolio, where I used PTY as a stand in for CEFs and DBMF (CTA index). The portfolio is 50%/50% PTY/DBMF, and is rebalanced when the allocation drifts and any asset is over/under 7% the initial allocation. In 23 years, this happened 20 times (see the list of rebalancing events below).
I used PTY because I wanted to test how the portfolio would have performed in the GFC.
The big advantage of this particular portfolio construction, for us, as retail investors, is that it removes all fear, uncertainty and doubt, no matter what the market does. You do nothing most of the time, outside reinvesting dividends and rebalancing back to 50/50 from time to time (see list of rebalancing events below).
Note that this mechanical rebalancing makes you sell high and buy low. This is very clearly illustrated by the few rebalancing events in 2008 (see the list) where you bought a lot more PTY at huge discount.
After I did this test, I was very surprised of how good the performance was:
The 23 years CAGR (from May 2023 - May 2026) is 9%, with most drawdowns in the 10-15% and one larger drawdown -30% in the GFC, which, however, is almost half the PTY drawdown of -58% in the GFC (see chart below).
So, basically, a very good, stable, steady performance of the 50/50 PTY/DBMF portfolio for over 23 years, a time period which includes the GFC, deep corrections, the 2020 recession, 2022 stagflation and many minor crisis.
Of course, all the heavy lifting was done by the Pimco and the CTA managers, while the portfolio owner had only to rebalance from time to time. That's all.
In the charts below,:
Here is the list of rebalancing events: 20 rebalancings in 23 years:
1 2004-09-03 PTY = 57.1% DBMF = 42.9%
2 2008-07-11 PTY = 42.9% DBMF = 57.1%
3 2008-10-10 PTY = 36.1% DBMF = 63.9%
4 2008-11-07 PTY = 57.2% DBMF = 42.8%
5 2008-11-21 PTY = 41.6% DBMF = 58.4%
6 2008-12-19 PTY = 58.2% DBMF = 41.8%
7 2009-03-06 PTY = 37.3% DBMF = 62.7%
8 2009-03-27 PTY = 60.6% DBMF = 39.4%
9 2009-06-05 PTY = 58.6% DBMF = 41.4%
10 2009-12-18 PTY = 58.0% DBMF = 42.0%
11 2011-01-28 PTY = 57.3% DBMF = 42.7%
12 2012-09-21 PTY = 57.0% DBMF = 43.0%
13 2014-05-09 PTY = 57.1% DBMF = 42.9%
14 2015-01-02 PTY = 42.8% DBMF = 57.2%
15 2017-03-24 PTY = 57.1% DBMF = 42.9%
16 2018-05-25 PTY = 57.3% DBMF = 42.7%
17 2020-03-20 PTY = 42.8% DBMF = 57.2%
18 2020-06-05 PTY = 57.8% DBMF = 42.2%
19 2022-04-29 PTY = 42.8% DBMF = 57.2%
20 2024-10-25 PTY = 57.1% DBMF = 42.9%
Finally, here is the yearly Profits/Loss:
This is a very simple, mechanical portfolio, where I used PTY as a stand in for CEFs and DBMF (CTA index). The portfolio is 50%/50% PTY/DBMF, and is rebalanced when the allocation drifts and any asset is over/under 7% the initial allocation. In 23 years, this happened 20 times (see the list of rebalancing events below).
I used PTY because I wanted to test how the portfolio would have performed in the GFC.
The big advantage of this particular portfolio construction, for us, as retail investors, is that it removes all fear, uncertainty and doubt, no matter what the market does. You do nothing most of the time, outside reinvesting dividends and rebalancing back to 50/50 from time to time (see list of rebalancing events below).
Note that this mechanical rebalancing makes you sell high and buy low. This is very clearly illustrated by the few rebalancing events in 2008 (see the list) where you bought a lot more PTY at huge discount.
After I did this test, I was very surprised of how good the performance was:
The 23 years CAGR (from May 2023 - May 2026) is 9%, with most drawdowns in the 10-15% and one larger drawdown -30% in the GFC, which, however, is almost half the PTY drawdown of -58% in the GFC (see chart below).
So, basically, a very good, stable, steady performance of the 50/50 PTY/DBMF portfolio for over 23 years, a time period which includes the GFC, deep corrections, the 2020 recession, 2022 stagflation and many minor crisis.
Of course, all the heavy lifting was done by the Pimco and the CTA managers, while the portfolio owner had only to rebalance from time to time. That's all.
In the charts below,:
- Upper pane is the portfolio equity (green) vs PTY (red) and DBMF (CTA index reconstituted in blue).
- Mid pane is the portfolio drawdown (red) vs PTY drawdown (grey).
- Bottom pane is the allocation, green is PTY, orange is the DBMF index:
Here is the list of rebalancing events: 20 rebalancings in 23 years:
1 2004-09-03 PTY = 57.1% DBMF = 42.9%
2 2008-07-11 PTY = 42.9% DBMF = 57.1%
3 2008-10-10 PTY = 36.1% DBMF = 63.9%
4 2008-11-07 PTY = 57.2% DBMF = 42.8%
5 2008-11-21 PTY = 41.6% DBMF = 58.4%
6 2008-12-19 PTY = 58.2% DBMF = 41.8%
7 2009-03-06 PTY = 37.3% DBMF = 62.7%
8 2009-03-27 PTY = 60.6% DBMF = 39.4%
9 2009-06-05 PTY = 58.6% DBMF = 41.4%
10 2009-12-18 PTY = 58.0% DBMF = 42.0%
11 2011-01-28 PTY = 57.3% DBMF = 42.7%
12 2012-09-21 PTY = 57.0% DBMF = 43.0%
13 2014-05-09 PTY = 57.1% DBMF = 42.9%
14 2015-01-02 PTY = 42.8% DBMF = 57.2%
15 2017-03-24 PTY = 57.1% DBMF = 42.9%
16 2018-05-25 PTY = 57.3% DBMF = 42.7%
17 2020-03-20 PTY = 42.8% DBMF = 57.2%
18 2020-06-05 PTY = 57.8% DBMF = 42.2%
19 2022-04-29 PTY = 42.8% DBMF = 57.2%
20 2024-10-25 PTY = 57.1% DBMF = 42.9%
Finally, here is the yearly Profits/Loss:
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buckskinbowman
Dryer sheet wannabe
You guys are freaking me out with all the talk of a possible WDI divi cut. I just bought into this fund in December, but now I'm seriously considering selling before it goes ex-divi and buying YYY instead, which pays only .5% less and seems much more stable. Am I being too rash?
“Never” has never been part of my investing vocabulary.
I only hold funds that are performing well and continue to perform well — until I find something better.
Confidence alone is not a recipe for success. Investing ultimately comes down to two key factors: performance and risk/standard deviation — in other words, risk-adjusted returns.
As Warren Buffett said, diversification is often “protection against ignorance” for people who don’t fully understand what they’re doing.
Flexibility is essential. Never just buy and hope. Markets are the smartest tool you have, and my entire model has been shaped around listening to them.
Stocks:
- From 1995–2000 and again after 2010, I was heavily tilted toward U.S. large-cap growth.
- From 2000–2010, I shifted toward value, small cap, and international funds.
Bonds:
- PIMIX was my first major bond fund. I held it from 2010 through January 2018, growing it from 10% to more than 50% of my portfolio for several years.
- After that, I found other strong opportunities.
- In 2023–2024, CLO bonds were the hot area, and I had more than 80% allocated there through funds like HOSIX and CLOZ.
- Since April 2025, for the first time ever, I concluded that EM bonds offered the best opportunities, and at one point more than 90% of my portfolio was invested in them.
One of the biggest mistakes investors make is relying only on 10-year performance records, especially for bond funds. By the time a great smaller fund has a 10-year history, much of the best performance, often driven by exceptional managers in the early years, may already be behind it.
PIMIX was a great example of it.
One simple strategy, and it has made me very good money for close to a year.
Most buy-and-hold investors would rarely touch these types of funds. By the time they finally feel comfortable buying, they’re usually already a year late. And when the fund starts lagging, they often wait months too long to sell.
If you really want to understand a fund, especially more flexible or complex ones, go directly to the fund company’s website and read the material yourself. That’s where you learn how the managers actually invest, how flexible they are, and what risks they are taking.
My posts are just ideas and not recommendations. For that, you must do your own due diligence.
PaulR888
Recycles dryer sheets
I will wait and hopefully DrVenture answers my question. I did go to EV site. Net adjusted ER is 1.05%. There are no monthly distributions, only an annual distribution in Dec. Benchmark is ICE 3 month UST Bill Index which seems weird to me. I see again 13% in Foreign Stock. I see again lots of long/short foreign currencies. PMs are identified as an EM Debt Team, all young CFAs 13-22 years experience, no gray hairs. Never heard about or seen any of them before.
Steelpony
Full time employment: Posting here.
Multiple CEF’s can cut their distributions due to costs of leverage. So it’s the same problem for all, professional management which one pays a lot for doing their work.
What are you going to do with a switch that cuts its distribution later on and those lost values are on top of the first ones? Possibly compounding losses doesn’t seem like a solid investing technique.
After the actual fact a professional might continue to hold, add more to WDI on sale or make a switch to something else based on better financials.
I’m a buy and hold investor. That requires a lot of patience. I do maintain a replacement list though.
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Flieger
Thinks s/he gets paid by the post
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Looking back, the last distribution announcement was Feb 23rd. Ex Div was Feb 20th. So wouldn't you think the next 3 month distribution announcement will be after the next Ex-Div date? granted, it will be tough to get a recovery of the Div drop before then.....
Flieger
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dickoncapecod
Thinks s/he gets paid by the post
That schedule was 1 in a row. Check others at cefconnect. But this morning's PPI raises far greater issues for entire portfolios.
Regards, Dick
PaulR888
Recycles dryer sheets
Hi ... I am just watching the exchange here, but I am a little perplexed about a jump to YYY which is close to half stocks and half bonds. I assumed I was in primarily a group of bond CEFs investors.
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Sold some green lots of GOF. Watching PDI is making me nervous. Adding to YYY.
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
YYY is a high income fund, 12%+ distribution. Income doesn’t always mean just bonds.
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dickoncapecod
Thinks s/he gets paid by the post
With the exception of GOF --- which I also lightened up on --- Everything looks awful on daily rather than weekly charts. And frankly, that fits with the inflation news. I'm retreating to capital preservation mode ---- trading dreams of potential upside/rally in return for avoiding potential real $ losses.
Regards, Dick
PS. If PDI is the thermometer, the patient is ill. D
Semi-Retyrd
Recycles dryer sheets
EGRIX is discussed quite often on my thread on Alternative Investments. See my opening post below. (most important is to read the attachment on fund strategy).
Why I like certain alternative investments.
I have been a fan of this fund for quite some time, but now am planning to sell a portion of my current position. Not to go off topic in this thread I will put up a post in the alternative investment thread today explaining my reasoning. Cheers, Dennis
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dickoncapecod
Thinks s/he gets paid by the post
Don't forget $25 billion 30yrs being sold at the market at 1pm. Perhaps a 5% coupon will interest retail and insurance companies/liability matchers.. ?
Regards, Dick
Regards, Dick
Flieger
Thinks s/he gets paid by the post
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toreador99
Recycles dryer sheets
I'm having some concerns too after reading Dick's post, trying to process a plan going forward.
stefansm
Recycles dryer sheets
FWIW - Here is how the technicals on PDI are looking to me, on the weekly below:
PDI is now in an A-B-C classic bull flag/correction trading range, inside an upward channel, and, this is important, on decreasing volume. The decreasing down volume is the hallmark of a correction not a new downward trend. Also, your favorite indicator, the weekly MACD is on a buy signal.
P.S.
Elliotticians will find this chart notations familiar
...
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@PaulR888
My attraction to EGRIX at the moment is that I am chasing performance. I fled to cash with all of my bond oef money earlier this year. I'd rather hold cash at 3.5-4.5% (tax deferred), than take risk/losses in bond oefs. I am also very light on equities, based on my historical allocations. Just not liking all the uncertainty, moving parts, etc, at the moment.
I am also on the very cusp of retirement, so needed to finally regroup and de-risk. Now, I find myself needing to put some of the cash back to work. I am fine with foreign stock exposure, as I actually have very little otherwise. So, more a matter of "some" diversification versus a true core holding. That said, I am about to start looking for core bonds, as EGRIX is more of a momentum play for me. Given the very high PPI reading, which I have been anticipating, I think this may be a good time to start considering some new core positions. Honestly, I am somewhat mindful of ER, but mostly focus on TR.
In fact your question is timely, as I am open to ideas/suggestions/recommendations for bond oefs that serve the core function, in an inflationary environment. I am just beginning to review that category.
I was about to say the same thing! I also recall (with fondness) your presence on other forums. Thank you for the kind words!
My attraction to EGRIX at the moment is that I am chasing performance. I fled to cash with all of my bond oef money earlier this year. I'd rather hold cash at 3.5-4.5% (tax deferred), than take risk/losses in bond oefs. I am also very light on equities, based on my historical allocations. Just not liking all the uncertainty, moving parts, etc, at the moment.
I am also on the very cusp of retirement, so needed to finally regroup and de-risk. Now, I find myself needing to put some of the cash back to work. I am fine with foreign stock exposure, as I actually have very little otherwise. So, more a matter of "some" diversification versus a true core holding. That said, I am about to start looking for core bonds, as EGRIX is more of a momentum play for me. Given the very high PPI reading, which I have been anticipating, I think this may be a good time to start considering some new core positions. Honestly, I am somewhat mindful of ER, but mostly focus on TR.
In fact your question is timely, as I am open to ideas/suggestions/recommendations for bond oefs that serve the core function, in an inflationary environment. I am just beginning to review that category.
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dickoncapecod
Thinks s/he gets paid by the post
Remember, I don't know anything the market and data don't show us all!
Regards, Dick
Except that you are paying attention and have the skills to process it all and put it on paper (so to speak).
That being said, the current environment is prone to sudden shifts and changes. So, point taken.
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dickoncapecod
Thinks s/he gets paid by the post
Interesting. Of course, my "complaint" with the decision aid I've used for years was it was way too slow for rhe high speed large ups and downs recently brought on by energy (but not ONLY) energy price inflation. If I'm right ---- and DAILY charts/MACDs smell awful ---- the good old weekly MACD indicator was so slow that it signaled "okay, now buy the top!" I'm sure it will still work when we return to normally-trending slow-and-boring Fed-policy driven yield trends.FWIW - Here is how the technicals on PDI are looking to me, on the weekly below:
PDI is now in an A-B-C classic bull flag/correction trading range, inside an upward channel, and, this is important, on decreasing volume. The decreasing down volume is the hallmark of a correction not a new downward trend. Also, your favorite indicator, the weekly MACD is on a buy signal.
P.S.
Elliotticians will find this chart notations familiar
View attachment 63545
Regards, Dick
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