- This is a fund that I've written about previously, more so in a bearish manner as the valuation and under-earned distribution always concerned me.
- The fund recently merged with two other Guggenheim funds, GPM and GGM, which sent the valuation lower by 13%.
- A new Guggenheim fund is coming out in the next few weeks, GUG, which may be sapping some demand from GOF as investors go from a 13% premium to NAV.
- However, GUG's new yield will be much lower than GOF's, which could reverse that flow.
- I like GOF here for a medium term hold given the lack of opportunities in the CEF space. This is a relative value true.
For further details see:
GOF: An 11.6% Yielder Trading At A 'Cheap' 12.5% Premium Is A Decent Deal