ECF: Discount Remains Attractive As The Fund Continues To Perform Well

2025-02-28 12:14:09 ET

Summary

• Ellsworth Growth and Income Fund has continued to see strong results since our prior update, even with the fund's discount widening a touch.
• As rates have stabilized and yields ticked higher in the convertible space, that has helped to drive these better results and income generation in the fund.
• The relative discount may not seem too appealing at this time, but the absolute discount, along with the potential for some activist pressure, still makes this one appealing.

Written by Nick Ackerman, co-produced by Stanford Chemist

Ellsworth Growth and Income Fund ( ECF ) has seen its discount widen slightly since our last update. Even with some discount expansion, the fund has been able to outpace the S&P 500 Index since then. This isn't the appropriate benchmark, but it can help to provide some overall context. I wouldn't tend to expect ECF to outperform the S&P 500 Index over the long term, given their hybrid approach of investing in fixed-income and equities. The fixed-income sleeve is largely convertible security exposure.

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