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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (104601)	7/14/2006 6:43:07 PM
From: Knighty Tin	Respond to of 132070

Deeply discounted closed end funds are one of the very best ways to go long. One of the reasons is that you are getting more than a dollar working for each dollar you invest. Also, the closed end manager doesn't have to worry about making marketing happy or meeting redemptions. And, many, many funds are now buying back a % of shares when the discount hits a certain point. I managed a CEF and its open end clone. Both were convertible bond funds. The American Capital Harbor Fund performed well, but the closed end American Capital Convertible Securities (ACS back then. It has been made part of The Van Kampen Harbor Fund since then) always kicked Harbor's butt, and both I and the other managers before and after me always managed the two funds the same way. And ACS outperformed while selling at a premium, not a discount.