Closed-end funds continue to gain in popularity as investors hunt for yield in a yield-less world.
The fourth quarter of last year surprised many CEF newbies to the realization that these funds have more risk than thought.
Adjusting your mindset to look at widening discounts (especially when accompanied by rising NAVs) as opportunities rather than risk can significantly improve your outcomes.
We work hard to "look through" the NAV of the fund to identify the risks that are likely to drive its performance.
We give an example with NMZ.