MCN - MCN: Play The Mid-Cap Revival Via CEFs 10% Distribution
2024-07-17 15:36:47 ET
Summary
- Markets anticipate rate cuts following cooling inflation data, leading to a rally in mid-cap and small-cap equities.
- Madison Covered Call and Equity Strategy Fund focuses on mid-cap value equities with a high distribution rate from option premiums.
- MCN has historically outperformed mid-cap ETFs, with a stable premium to NAV and a unique focus on overlooked securities.
- MCN's focus on undervalued stocks (low P/E ratio) positions it well for potential growth.
Thesis
With the first positive signs of a cooling inflation picture via a better than expected CPI read, the markets are now aggressively planning for rate cuts. Lower rates equate to better funding terms for mid-cap and small-cap equities, which have both seen a rally in the past week: