GOF: Enough Is Enough With The Premium, I'm Out (Downgrade)

2025-01-23 14:55:13 ET

Summary

• The Guggenheim Strategic Opportunities Fund has boasted impressive returns, beating out the S&P 500 since my first recommendation.
• GOF's premium has surged to 31.37%, making it expensive compared to its NAV, leading to a recommendation to rotate into cheaper funds.
• Moderate and conservative investors should consider selling GOF to capitalize on the high premium and invest in alternative CEFs trading at discounts.
• Aggressive income investors may hold GOF for its stable payout, but should limit exposure to 2% of their income portfolio.

Introduction

One of the first articles I ever wrote for Seeking Alpha was on the Guggenheim Strategic Opportunities Fund ( GOF ), back in November 2023. It was my 11th article. I'm up to 177 now!

Thank you to any readers who were following me back then and remember this article. It was titled, The Premium Has Come Down on Opportunistic Credit . ...

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