GUG - GOF: An 11.6% Yielder Trading At A 'Cheap' 12.5% Premium Is A Decent Deal

December, 03 2021 07:00 AM Guggenheim Active Allocation Fund of Beneficial Interest

This is a fund that I've written about previously, more so in a bearish manner as the valuation and under-earned distribution always concerned me.
The fund recently merged with two other Guggenheim funds, GPM and GGM, which sent the valuation lower by 13%.
A new Guggenheim fund is coming out in the next few weeks, GUG, which may be sapping some demand from GOF as investors go from a 13% premium to NAV.
However, GUG's new yield will be much lower than GOF's, which could reverse that flow.
I like GOF here for a medium term hold given the lack of opportunities in the CEF space. This is a relative value true.

For further details see:

Company Name:	Guggenheim Active Allocation Fund of Beneficial Interest
Stock Symbol:	GUG
Market:	NYSE