- The two Liberty equity CEF funds, the Liberty All-Star Growth fund (ASG) and the Liberty All-Star Equity fund (USA), have gone in opposite directions lately when it comes to premium/discount valuations.
- For years, it was the Liberty All-Star Growth fund (ASG) that traded at upwards of 15% premiums, while the Liberty All-Star Equity fund (USA) meandered at nominal discounts.
- But that has all changed and currently it's USA that trades at a 15.3% premium, while ASG trades at around par to a slight discount.
- Is it because the managers for ASG focus on growth stocks, while the managers for USA focus on both growth and value stocks and value seems to be better play after years of growth stocks outperforming?
- If so, you wouldn't know it by the nominal difference in NAV performance between the funds this year. Or maybe it's because it's USA's turn to go through a Rights Offering. And if that's the case, you should definitely be swapping out of USA and into ASG.
For further details see:
Equity CEFs: The Liberty All-Star Funds - Recommend Swap Out Of USA Into ASG