LQD - RIV: Attractive Discount But Could Get More Attractive

2024-03-12 22:23:31 ET

Summary

• RiverNorth Opportunities fund continues to trade at an attractive valuation relative to its historical level.
• The fund is highly diversified, with the largest exposure in other closed-end funds, and offers a multi-asset approach with an attractive distribution rate.
• The fund looks relatively attractive; however, it is overdue for a rights offering that it had done annually - a rights offering could see the discount widen further.

Written by Nick Ackerman, co-produced by Stanford Chemist.

RiverNorth Opportunities ( RIV ) is a closed-end fund that continues to trade at an attractive valuation. Historically, this fund has traded at close to parity with its net asset value per share. It has even traded at meaningful premiums for lengthy periods of time, spanning a year or longer.

That said, the fund continues to trade at a fairly substantial discount for a period of time. This has been the case since our last update as well, but it is off the widest discount levels. The total returns of the fund have been fairly respectable since our last update. Though it has been quite a volatile period since our last update , and the fund wasn't able to escape the last October market swoon,...

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