STK - STK: Tech Fund Missed Out On The Recent Rally Underperformance To Continue

The Columbia Seligman Premium Tech Growth Fund (STK) is a closed-end fund ((CEF)) that invests in technology sector stocks. The fund utilizes an options selling strategy that supports its managed distribution policy that currently yields 9.2%, making STK an interesting vehicle for income-focused investors. That being said, we highlight a relatively poor performance history with the fund lagging its benchmark this year, potentially exposing some weaknesses in the strategy and the portfolio allocation. We recommend investors avoid STK in the context of our overall cautious market outlook as risks are tilted to the

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