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

To: valueminded who wrote (34544)	10/26/1998 11:58:00 AM
From: Knighty Tin	Respond to of 132070

Chris, I sold my GCV in this up market. I still like it, but I thought it had popped enough for this bounce and it is at the lowest discount it has been at since it converted from open end. Though I like the way it is managed and think it is a good fund, I would not buy it at a 3% discount when there are good convert CEFs with a double digit discount. In fact, the best performing convertible CEFs have the largest discounts. The worst performing, TCW, sells for a 16% premium. Go figure! I no longer recommend the fund I once managed, for a cup of coffee <G>, ACS. The manager I knew has departed. As good managers get fired or leave under protest at American Capital, they are generally replaced by folks who can't manage their way out of a paper bag. But are good "team players." <G> I do not know the new manager and cannot say whether she is good or bad. I just know that the switch from the superstar system of management to the Stepford Wives system has not been a boon for American Capital shareholders. Of course, as the former star of stars at the firm, I may be a bit prejudiced. <G> But if I am, the returns seem to be prejudiced along with me. I recommend either Ellsworth or Bancroft, ECF or BCV. Both are managed by the same group the same way. And they've been doing it for many moons. Very well, thank you. <G> I like the Royce funds and held Royce Value Fund Convertible Notes for a long time. I only see two negatives here. One is that their small cap value stocks are a long term game. That is not necessarily bad, but it could require patience. The other is that Royce does a lot of rip off rights offerings. True, his rights offerings are the most efficient in the industry and the most fair, but they still cost shareholders about 2% when they decide to pick your pockets. The time to buy is just after a rights offering. BTW, I do not think the preferred is a convertible. I think it is a straight preferred. And the convertible bonds have long been converted. MB