PDX - PDX: Neither The NAV Nor The Market Has Fully Priced In The Venture Global IPO
2025-01-15 08:19:46 ET
Summary
- PIMCO Dynamic Income Strategy Fund moved away from its Energy focus in 2024 but still holds about 50% in the sector, including pre-IPO shares of LNG company Venture Global.
- There is more upside to PDX NAV if VG prices within or above the current $40-$46 range.
- If VG prices at the top of the range and PDX closes its discount to NAV, PDX could gain around 18% from its market price of $31.86.
- I rate PDX as a Strong Buy, anticipating further NAV appreciation and market price alignment following Venture Global's IPO pricing.
A Unique PIMCO Closed End Fund
The PIMCO Dynamic Income Strategy Fund ( PDX ) has a name that sounds similar to several other PIMCO taxable fixed income closed end funds , but has a portfolio very different from the others. This is because until November 2023 , it was known as the PIMCO Energy and Tactical Credit Opportunities Fund with a policy to invest at least 80% of its assets in the Energy sector. Under the new name, PDX now has " a primarily income-oriented objective and broader, multi-sector credit mandate " although it will continue to invest at least 25% of its total assets in the energy industry. ...
PDX: Neither The NAV Nor The Market Has Fully Priced In The Venture Global IPO