PDX: High Income And Opportunistic Bets At A Steep Discount

2025-04-20 12:59:29 ET

Summary

• The PIMCO Dynamic Income Strategy Fund (PDX) offers a 13.35% discount to NAV and is managed by the reputable PIMCO, making it an attractive buy.
• The fund is transitioning from a pipeline to a fixed income fund with a broad mandate, including corporate debt, MBS, bank loans, and equities.
• Venture Global LNG, a significant holding, has litigation risks but offers growth potential, especially with favorable U.S. energy policies and European demand.
• PDX's current discount is higher than its 6-month average, suggesting potential for price recovery and attractive monthly distributions with a forward rate of 7.8%.

There are times I love closed-end funds more than other times. If there’s a lot of downside volatility, I love to look through them. They tend to sell off along with equities, even if they don’t necessarily suffer from the same threats the equity markets are suddenly discounting. The PIMCO Dynamic Income Strategy Fund (PDX) is a fund, with $900 million of AUM, that I really like right now at a discount to net asset value of 13.35%. It has a great manager in PIMCO. Usually, not a shop with huge discounts on its funds. The fund is in a process of restructuring from a pipeline fund into a fixed income fund with an opportunistic global mandate....

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