- I first wrote about the Guggenheim Strategic Opportunities Fund back in July 2021.
- My thesis at that time was that its high premium (about 27%) and use of leverage did not provide the most comfortable margin of safety.
- The price correction since then has lowered and premium somewhat and provided a much higher yield.
- The fund has become more reasonably valued now.
- But we remain cautious considering the leverage, the premium, and its concentrated exposure to bank loans and high-yield corporate bonds.
For further details see:
GOF Revisited: More Reasonably Priced Now But We Remain Cautious