AFT - BGX: Making All The Right Moves In Today's Market Environment

2024-03-17 02:45:17 ET

Summary

• The Blackstone Long-Short Credit Income Fund offers a high level of income with a 10.26% yield, comparable to other alternative credit funds.
• The fund has performed well, with a 6.97% appreciation in shares since the previous article was published.
• The fund's leverage is reasonable at 31.23% of its overall portfolio, and its distribution varies but is generally attractive.
• The fund is currently trading at a fairly large discount on net asset value, and the current price is reasonable to acquire shares.
• The fund has historically underperformed its peers, and there is no real evidence that this is likely to change.

The Blackstone Long-Short Credit Income Fund ( BGX ) is an unusual closed-end fund that income-focused investors can purchase in order to pursue their goals. The fund certainly manages to do pretty well at providing its investors with a high level of income, as its 10.26% yield compares fairly well with most other debt-focused closed-end funds on the market. The fund has very few direct peers, at least publicly traded ones, as this is one of the few closed-end funds that claims to have the ability to use short positions. However, here is how its yield compares to that of a few credit funds offered by other alternative asset managers:

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