FMD Capital Management

Posts Tagged: dbl

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

RiverNorth and DoubleLine Release New Strategic Bond CEF

Written by David Fabian, October 17th, 2016

The arrival of new strategies within the closed-end fund (CEF) universe is always an interesting event.  There are much fewer new CEFs released on an annual basis than the exchange-traded fund world, which makes this experience more noteworthy. Read more

CEF 101: Don’t Buy Funds At Abnormal Premiums

Written by David Fabian, October 14th, 2016

Investors in closed-end funds have to contend with different risks and analysis criteria than ETF or open-ended mutual funds.  Those that have spent any length of time in this space have more than likely learned how important it is to look beyond distribution yield, recent price trend, or the touch of a star fund manager.  While these characteristics are important, they can easily be overridden by an exorbitant premium or fundamental catalyst that turns the corner. Read more

There is No Perfect Formula For Measuring CEF Valuations

Written by Michael Fabian, May 20th, 2016

While most investors would likely believe that it’s tougher to uncover relative value in deeply discounted closed-end funds, in my opinion the hardest part of managing a CEF portfolio is knowing when to cut bait and move on.  The truth is that there is no clear formula for measuring valuation, meaning that although a fund may be trading marginally above its historical spread to NAV, that doesn’t necessarily mean it’s richly valued. Read more

When Premiums Become Too Good to Pass Up

Written by Michael Fabian, December 31st, 2015

It’s been an unsettling few years for closed-end fund (CEF) investors, as volatility has hindered returns in what would otherwise be a fruitful investing environment.  It all began with the “taper tantrum” and the knock on effects that followed.  More recently, the lingering adversity in this space has been caused by the long impending interest rate hike. In fact, it’s been roughly two years since CEFs as a whole have moved from deep discount territory to narrower sale prices and more abundant premiums. Read more