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Strategies & Market Trends : Young and Older Folk Portfolio
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To: goldcountry who wrote (9809)9/23/2024 8:42:37 AM
From: jritz05 Recommendations

Recommended By
cole505
dannyc9
misscbd
suncoaster
Tam3262

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RE: QUESTIONS for CHOWDER and ALL

1. Did you identify a certain percentage of your portfolio that you would invest in CEFs?

I identified a certain amount of yearly cash flow I wanted from my portfolio and CEFs helped accomplish that goal while leaving plenty of other funds to pursue growth and cash. Recently ETFs have replaced much of the CEFs.

2. How did you select the strategies of CEFs that you would invest in?

I joined a few services on SA over the years, I currently subscribe to two: Doug Albo and Stanford Chemist. I think their services is a small price to pay. They help me oversee that part of my portfolio and paid for themselves many, many times over. I also gained a great deal of knowledge of CEFs because of the services. You can gain knowledge without the services but you wouldn't get the actionable ideas in a timely manner.

3. Do you track the changes in discount/premium with any regularity to rotate in and out of your CEFs or buy and hold as long as the distributions remain constant?

I monitor discount and premiums and will sell if the premium becomes obsessive and won't buy a CEF with a premium much over a couple of percent.

I differ from Chowder in that I won't sell to keep a position from going into the red. CEF investors can be very irrational (I'm not talking about Chowder) that is why we can see big premium/discounts to nav on CEFs in the same sector. I watch the nav direction more than the price. if the fund is bleeding nav than I will sell unless I believe it's just overall reaction to that sector that may be temporary. I will also make bets on certain sectors moving in and out of favor particularly REITs and Utes and banks.

Selling to keep from going into the red like Chowder is not a bad way to manage a CEF portfolio. Many CEFs are relatively illiquid and CEFs could be the first thing to be dumped by Institutional Investors which could start the stampede out of the funds.


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