Main Thesis
The purpose of this article is to evaluate the PIMCO's California Municipal Income Fund (PCQ) as an investment option at its current market price. On the surface, PCQ looks like a fund I would adamantly avoid, primarily due to its continuously growing premium to NAV. Sitting at almost 30%, PCQ is clearly expensive, and is well above my normal 10% premium buying limit. That said, the reasons behind this fund's strong short-term performance remain in place, which tells me it could trade higher still. Specifically, PCQ has a large, albeit declining,