BCX - BCX: A Hold Now After The Commodities Run-Up (Rating Downgrade)
2024-05-10 23:26:41 ET
Summary
- This article discusses BCX, a closed-end fund from BlackRock that invests in energy, mining, and agricultural companies.
- Oil prices have recently declined, and the author expects them to remain range-bound with downside risk. BCX holds companies from cyclical sectors that could be hurt by a recession.
- The discount between BCX's market price and its net asset value (NAV) has widened. BlackRock should do more to close this gap.
- Downside risk factors for the fund and its holdings are outlined in the article.
Thesis
BlackRock Resources & Commodities Strategy Trust ( BCX ) is a closed end fund we covered a year ago with a 'Buy' rating in light of the underlying fund composition and the manager's efforts in narrowing the discount to NAV. Our call proved to be correct, with the CEF producing a robust total return since:
Rating (Seeking Alpha)