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Strategies & Market Trends : Value Investing

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From: MCsweet	2/24/2016 3:49:08 PM
	of 78802

TGONF, Trading at a huge discount to NAV (> 50%) with a 7.5% yield, I think TGONF is worth some attention here. Guessing it might be down on possibility of Brexit or simply a hedge fund liquidating its position. I could be missing something because I don't understand why it keeps dropping with high yield and equities recently holding in there. TGONF is a hybrid CLO and general investment fund combined with an investment manager. It does have about 1/3 of its portfolio in CLOs, but low energy exposure. Its portfolio also includes hedge funds, and it has an asset management business. Negative: Management is kind of slimy -- they do small buybacks and tenders, but also issue themselves shares. They should be buying back stock hand over fist right now. Yield is 7.5% -- dividend announcement should be in the next week or so - perhaps people are expecting some bad news there. This is a PFIC, so best for an IRA account so you don't have to file weird tax forms. My basic bet on this is the huge discount to NAV gives cushion in case something bad happens, and if management happens to do the right thing you could see a nice rebound while collecting a 7.5% yield. MC

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