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
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
Written by David Fabian, February 02nd, 2017
Emerging market bonds were one of the few bright spots across the fixed-income landscape in 2016. This category trailed only U.S. high yield debt by total return metrics despite some meaningful volatility in the aftermath of the U.S. election. Investors also took notice of this outperformance and the favorable yields to boot. Read more
Written by David Fabian, January 17th, 2017
Investors who have held onto their U.S.-focused dividend ETFs have been rewarded in both income and capital appreciation during the breadth of this bull market. The combination of relative momentum, low volatility, and steady accumulation of quarterly distributions have been the hallmarks of this steady trade.
Yet, those who study market history know that price performance that outstrips company fundamentals comes at a cost. Namely higher statistical valuation measures, alongside slowly decreasing yield for new investors. As a result, dividend stocks that looked attractive several years ago are now starting to rise into the expensive zone relative to other global opportunities.
Written by Michael Fabian, February 26th, 2016
Late last year we took strategic steps to raise cash for our Dynamic CEF Income portfolio in light of the decline in high yield bonds. In hindsight, having a 20% money market position going into the January-February 2016 correction was certainly a relief. Nevertheless, it has always been our plan to deploy that capital at more advantageous prices or in funds exhibiting a stronger relative value story. Read more