GOF - GOF: Rethinking Opportunistic Credit Despite Heavy Payouts (Downgrade)

2024-03-05 12:28:12 ET

Summary

• The Guggenheim Strategic Opportunities Fund has been praised for its double-digit dividends, but I am now limiting my stake in GOF and phasing it out of my CEF portfolio.
• GOF is a mixed bag of assets with a growing allocation to stocks, and it has performed well against its benchmark.
• Recent performance has been spurred on by a rise in premium, and the trade I recommended in November has come to a close.
• I advise investors not to add to their GOF position and potentially trim it in favor of other CEFs trading at discounts, and conservative investors should consider exiting GOF entirely.

Introduction

Last November, I published an article titled, " GOF: The Premium Has Come Down on Opportunistic Credit. " I encourage you to check that out after reading this, to see where I came from to reach the new conclusions presented in this article....

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