VCIF - CEF Focus Investing - My Rule Of Thumb In Action

• A reliable selection criterion for building a portfolio of funds that are likely to produce above-average returns over the long haul is the goal of every CEF investor.
• For me, the flexible combination of a positive NAV since inception, discount on NAV, and leverage represents a practical rule of thumb for long-term CEF investing.
• In this article, I focus my attention mainly on the first factor, namely the ability of a CEF’s managers to create value over time, as reflected by a positive trend.
• I will then test my rule of thumb by proposing a selection of CEFs that satisfy – if not in whole, at least in part – the principles on which their selection is based.

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