Our Investment Process

What is a closed-end fund?

Closed-End Funds are mutual funds that issue a fixed number of shares of stock in a traditional IPO process.

Closed-End Funds trade throughout the day on either the New York Stock Exchange or American Stock Exchange. Unlike traditional mutual funds which are purchased and sold at Net Asset Value (NAV), a closed-end fund has a share price which may differ from the fund's NAV.

Due to the fact that closed-end funds trade on the exchange, their price is determined by the supply and demand in the market. Therefore, closed-end funds can trade at discounts or premiums to their NAV.

Closed-End Funds invest in a variety of different securities and strategies. They typically are issued with a mandate to manage a specific sector (fixed income or equity; domestic or foreign; bonds or loans; taxable or municipal bonds). Some closed-end funds may be mandated to utilize leverage in order to increase their yield and capital appreciation.


Understand Client Needs

Evalute Client Risk Tolerance – Recommend Customized Allocation

Security Universe

650 Closed-End Funds 500+ ETFs
Market Cap of Closed End Funds = $200 Billion / Market
Cap of ETFs = $750+ Billion

Filter the Universe

Strip out illiquid funds eliminate unattractive asset classes
Indentify CEFs with Catalyst to Narrow Discounts

Evaluate Securities

  • Manager Performance
  • Underlying Assets
  • Relative value of sector
  • Discounts to NAV
  • P/E, P/CF, PEG, P/B
  • Expense Ratio
  • Distribution Policy
  • Lifeboat Provisions
  • Leverage
  • Embedded Gains
  • Technicals
  • UNII

Portfolio

30-40 Securities with a 1-3 Year
Time Horizon