FMD Capital Management

Posts Tagged: cef

Is A Dividend Cut On The Horizon For DBL?

Written by David Fabian, November 06th, 2017

One of the closed-end funds that seems to be a recurrent favorite on our watch list is the DoubleLine Opportunistic Credit Fund (DBL), run by Jeffrey Gundlach of DoubleLine Capital.  This unique actively managed portfolio was the first of its kind to debut from DoubleLine back in 2012 and has developed a cult following among CEF investors.

DBL primarily invests in a mixed basket of mortgage backed securities, collateralized loan obligations and other asset backed securities.  The fund has just over $325 million in total assets with a relatively tame 16% leverage ratio to boost its net exposure.  It currently yields over 8% annually and income is paid monthly to shareholders.  Read more

Volatility In CEFs Is Creating New Opportunities

Written by David Fabian, August 21st, 2017

Virtually every corner of the closed-end fund (CEF) marketplace has been on an unrelenting grind higher over the last 18-months.  Very few pullbacks have meant that you either had to be in these vehicles to capture the capital appreciation from the get-go or grind your teeth and jump in at some random point along the way. Read more

Dealing With A Dividend Cut In Your CEF Portfolio

Written by David Fabian, July 12th, 2017

If you dabble in the closed-end fund market long enough, you are probably going to own a fund that sees its dividend cut.  This seemingly innocuous event can have numerous ripple effects for shareholders that should be carefully evaluated before you respond with any knee-jerk reactions.  Read more

Great Investment versus Great Timing

Written by David Fabian, June 05th, 2017

The investment universe is littered with articles touting the advantages of various funds or strategies.  I should know.  I have written for the last five years about the characteristics of ETFs and closed-end funds that we consider for our clients.  Some pass my rigorous test, while others are weeded out through careful analysis.

Throughout this time, I have realized it’s easy to compare two or three funds in a vertical category and dissect their merits.  Some will stand out based on costs, while others may promote index methodology, tax efficiency, or security selection as their primary benefits.  Read more

Presentation: Generate High Income And Alpha Using Closed-End Funds

Written by David Fabian, May 18th, 2017

I was fortunate enough to be invited to speak at the Las Vegas Money Show this week and chose to deliver an educational presentation on closed-end funds (CEFs).  My focus was on the right way to analyze, select, size, and trade these unique investment vehicles.

There are a number of advantages to using CEFs in your portfolio – from bolstering your high yield exposure to tapping into an active investment managers’ prowess.  Whatever your goal may be, these tools can be an effective way to generate income and alpha when used correctly.  Below are the PowerPoint slides from my presentation that you can download to view.

May 2017 CEF Presentation Slides