BIF - Valuation Matters In Closed-End Funds
Closed-end funds [CEF] offer a unique way to capture value as discounts and premiums often skew for no apparent reason other than limited supply and demand, a situation that is exacerbated by low institutional ownership and low liquidity for many CEFs. One of the key services that we provide to members of CEF/ETF Income Laboratory is to warn when specific closed-end funds [CEFs] become egregiously overvalued. Selling an overvalued fund can lock in capital gains equivalent to several years of distributions, or viewed alternatively, can avoid the loss of several years of distributions when the