PDX - PDX: Still In The Driver's Seat Even After Venture Global's IPO Bust
2025-01-29 18:07:13 ET
Summary
- As most followers of the PIMCO Dynamic Income Strategy fund (PDX) know, the rapid-growth trajectory of the fund has been largely due to its private holding in Venture Global LNG.
- Last week, Venture Global finally went public with its IPO though got off on the wrong foot when an over-zealously priced offering had to be significantly scaled-back.
- That initial valuation misstep has cost VG some Wall Street credibility and the stock has now closed down -20% from its IPO $25/share to $20/share after just 3-days of trading.
- And suffering along with VG has been PDX, which rose as high as $32.65/share a couple weeks ago only to close at $25.32/share this Tuesday. A reversal of -22%.
- But if you're a shareholder of PDX, you should be looking at this as a golden opportunity. First, just the fact that VG went public is a huge bonus for PDX. And even with a disappointing opening for VG, PDX's NAV is still up +10.3% YTD.
I've been a huge fan of the PIMCO Dynamic Income Strategy fund ( PDX ) , $25.32 closing market price , ever since the fund was trading as low as $13/share in March of 2022 when the fund was then known as the PIMCO Energy and Tactical Credit Opportunities Fund (NRGX) .
But after NRGX went public in early 2019 at $20/share as a mostly energy MLP and energy credit fund, the resulting crash in anything energy related during COVID-19 a year later in 2020, probably planted the seed that PIMCO would ultimately want to reduce that level of risk in energy and move back to a more multi-sector income fund, like most of the other PIMCO CEFs, while maintaining some energy exposure....
PDX: Still In The Driver's Seat Even After Venture Global's IPO Bust