RSF - RSF: Unique Closed-End Fund Now Looking More Appealing

2024-05-26 11:53:33 ET

Summary

• RiverNorth Capital and Income Fund recently completed a rights offering, which saw its discount widen substantially before narrowing back once again.
• RSF is a unique closed-end fund with an interval structure and more of an oddball portfolio.
• The fund's historical performance has been poor, but with a more meaningful discount and stabilizing rates, it may be an interesting prospect going forward.

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

RiverNorth Capital and Income Fund ( RSF ) recently completed a rights offering, and as is common with rights offerings, the discount widened when announced. This is a unique closed-end fund in that it is a publicly traded interval fund. The vast majority of interval-structured CEFs are non-public.

We've discussed the interval structure before , but as a quick reminder, it can make this fund a bit more interesting when trading at a meaningful discount. This is because every quarter, the fund has to repurchase a minimum of 5% of shares outstanding. They also note that it can be up to 25%, but 5% has been the usual. That should, in theory, keep this fund's discount relatively more narrow....

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