STEW: A Cheaper Way To Own Berkshire Hathaway

2025-05-07 05:39:26 ET

Summary

• STEW is a solid core holding with a large cap value tilt, with about 40% invested in Berkshire Hathaway and about 10% in J.P. Morgan Chase.
• The fund's locked-in low-cost fixed leverage below 3% is a significant advantage, driving alpha and outperforming peers.
• STEW's high discount to NAV, currently at -19.11%, makes it an attractive buy, especially when the discount exceeds 20%.
• Despite a high expense ratio, the fund's strong portfolio, low leverage costs, and insider ownership justify a strong Hold rating.

The SRH Total Return Fund ( STEW ) is an equity oriented closed-end fund with a “tilt” toward large cap value and financials. About 40% of the portfolio is invested in Berkshire Hathaway ( BRK.B ) and about 10% in J.P. Morgan Chase ( JPM ). ...

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