CA - STEW: Another Distribution Bump For This Year

2025-02-18 04:49:22 ET

Summary

• SRH Total Return Fund offers significant exposure to Berkshire Hathaway, with it making up a 38% concentration.
• The fund's deep discount and more consistent distribution increases could attract some investors, despite its relatively low distribution rate for a CEF.
• That said, despite the deep discount, activist pressure on the fund is unlikely to materialize due to a significant concentration of ownership.

Written by Nick Ackerman, co-produced by Stanford Chemist

SRH Total Return Fund ( STEW ) is an older closed-end fund that provides significant exposure to Berkshire Hathaway ( BRK.A )( BRK.B ). This is considered a "non-diversified" fund due to this concentration. It's often considered one way to get a deeply discounted exposure to BRK, but also paying a quarterly distribution. Heading into 2025, they once again lifted the payout, now the fourth year in a row of bumping the distribution....

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