Any of you…."people" invest in these? I was reading a little bit about some of them. EOS, CLM (there are some contentious debates about that one). ASGI, UTG. Then Steven Bavaria with CLO investing holding EIC, ECC. I saw someone on here mention NMZ with a tax free 7.3% yield. Seems that it can be a very different strategy from buy and hold. Also saw KYN on here when I was asking about MLP's.

It seemed like Reddit threads on CLM were open warfare. It looks like dog**** but others swore you had to apply a strategy. Wait for a Rights Offering then immediately sell almost all of it, then buy in again as it comes back up. I guess the RO would crater the price and/or NAV. The Rights Offering and/or a Premium of 30% were the signs to sell and easy to track. Claimed he made 15-20% capital gain yearly plus 1-2% monthly for the 7-9 months yearly when he didn't cash out.

Do any of you own this and employ that strategy?

There's a financial advisor who posts on SeekingAlpha who uses and recommends a strategy that is primarily based on dividend paying CEFs. To get his daily updates and recommendations, and to participate in the chat (which has a lot of investors unusually informed on CEFs, bonds, and similar investment vehicles), you'll have to pay a subscription fee of around $500/year, or maybe a bit more. His service is entitled "Yield Hunting" on SeekingAlpha, if you're interested.

Interestingly, part of his secret sauce is not just collecting dividends, but also capital appreciation. He uses modeling to recommend when to purchase the CEFs, typically when their Net Asset Values are at historically high levels and their share prices are at low levels. He will also recommend selling when those two factors are inverted.

It has worked extraordinarily well over the last few years, but then again almost any strategy has. Regardless, it's a good way to received divvy's on one's portfolio in the 8-12% range.

As an FA I had a client who won about $8mm after tax in the lottery, we put about $5mm in muni bonds paying +5%, but they all got called over the next 10 years and to maintain income we looked at CEF's. And they worked. I also had a client with a $500k investment in a Franklin Templeton muni CEF held at Franklin, he died and then she died, the kids inherited about $700k and the parents had taken income the entire time they owned it.

Jabin said:

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There's a financial advisor who posts on SeekingAlpha who uses and recommends a strategy that is primarily based on dividend paying CEFs. To get his daily updates and recommendations, and to participate in the chat (which has a lot of investors unusually informed on CEFs, bonds, and similar investment vehicles), you'll have to pay a subscription fee of around $500/year, or maybe a bit more. His service is entitled "Yield Hunting" on SeekingAlpha, if you're interested.

Interestingly, part of his secret sauce is not just collecting dividends, but also capital appreciation. He uses modeling to recommend when to purchase the CEFs, typically when their Net Asset Values are at historically high levels and their share prices are at low levels. He will also recommend selling when those two factors are inverted.

It has worked extraordinarily well over the last few years, but then again almost any strategy has. Regardless, it's a good way to received divvy's on one's portfolio in the 8-12% range.

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Lord have you been sold. Do you actually know what NAV means? What about the relationship between NAV and "divvy's"?

Huh?

I have no clue what you're trying to say or ask with that last question.

Rather than attacking, would you mind stating your opinion clearly?