2024-04-04 12:50:34 ET
Summary
- EOI is an equity CEF that falls in the buy-write category.
- EOI has a strong correlation with the S&P 500 and a tradable discount to NAV.
- The CEF has outperformed the S&P 500 since we assigned it a 'Buy' rating eight months ago.
- Year-end targets for the S&P 500 from large banks have already been surpassed, indicating the potential for a market correction or stall.
Thesis
We last covered the Eaton Vance Enhanced Equity Income Fund (EOI ) eight months ago in this article, where we outlined for readers why we believed at the time the CEF was a better alternative to an outright S&P 500 purchase and our view on the name. Our thesis was delivered, with the targets on positive price move and discount narrowing met:
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Read the full article on Seeking Alpha
For further details see:
EOI: Targets Met, Moving To Neutral (Rating Downgrade)