SCD - SCD: Interesting Equity Portfolio A Fund To Keep In The Watchlist

2024-04-24 18:20:00 ET

Summary

• LMP Capital and Income Fund has delivered strong performance, outperforming the benchmark and peer group.
• The fund's portfolio is well-positioned to navigate the current macroeconomic environment, with a positive sector exposure.
• The fund's discount to NAV is near historical highs, making shares more vulnerable, but it is still worth keeping an eye on.

The LMP Capital and Income Fund Inc ( SCD ) has been successfully delivering a strong performance over the past years, outperforming the benchmark and the peer group.

SCD's portfolio composition seems well positioned to navigate this current macroeconomic environment. The fund trades at somewhat more reasonable valuations compared to the broader index and its sector exposure are a positive now. Its overweight exposure to energy can work as an inflation hedge, and its allocation to the real estate sector is supposed to deliver good returns when interest rates start to drop....

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