FMD Capital Management

Posts Tagged: cefs

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

Global Equity CEFs Are Hot – Should You Buy?

Written by David Fabian, April 28th, 2017

The hot hand in the closed-end fund marketplace this year are global equity funds.  These diversified portfolios own a mix of U.S. and international stocks with the added boost of embedded leverage.  Some also employ options or other derivative strategies to generate a portion of the abundant income that is distributed to shareholders. Read more

Pondering a Return To Our CEF Roots

Written by Michael Fabian, March 03rd, 2016

Out of the sea of uninteresting, useless, or junky funds in the CEF universe, one fund that I have always taken a personal and professional interest in is the Guggenheim Strategic Opportunities Fund (GOF).  This was one of those funds that in the early days was easy to predict and trade based on the typical risk aversion, investor appetite, and premium/discount analysis.  Furthermore, it has sported an extremely ostentatious yield in relation to its peers, which has kept investor interest brisk to say the least. Read more

Are ETFs Made Up of CEFs Worth Owning?

Written by Michael Fabian, February 11th, 2016

While we are huge proponents of leveraging low cost and liquid ETFs for virtually every asset class; ETFs that invest in closed-end funds (CEFS) are a different story altogether.  The two funds that have garnered the most investor attention in this space are the PowerShares Closed End Fund Composite ETF (PCEF) and the Yieldshares High Income ETF (YYY).  Both contain a seemingly diverse array of underlying asset classes, sectors, and strategies. Read more

2 CEFs Presenting Excellent Value Opportunities

Written by Michael Fabian, June 23rd, 2015

The choppy gyrations of the equity and fixed income markets have caused a bit of a ruckus for closed-end fund investors during the first half of 2015.  Driven primarily by shaky retail investors, the schizophrenic-like persona of many popular CEFs have created opportunities for investors with spare capital seeking high income. Read more