GHI - Global High Income Fund

[Guest MarkS]

I started a position in this closed end fund, GHI,, during the most recent junk bond meltdown.  This afternoon the board announced that the fund will be liquidated - subject to shareholder approval.  Also this afternoon two other funds announced that they were liquidating and one fund announced that it was converting to an open end fund.  Over the last five years about 20% of closed end fund have either merged, liquidated or open ended.  In comparison, during the same period only about 18% of the nation's small banks have merged or have been bought by larger banks.  I often hear about the opportunities that exist in investing in small/micro cap banks - of which I agree. But opportunities also exist in CEFs.  Most  people look down on CEFs . Maybe this view creates opportunity.

 

Thanks

Mark

[vertek]

What were the other announced liquidations and open-endings?

 

- vertek

[Guest MarkS]

Hi vertek,

 

These funds have made significant announcements in the last week or so.:  SGL, HYF, FDI, FTT AND RIT.  Happy hunting!

 

Thanks

Mark

[vertek]

Thanks for the reply, although today's subsequent price action has killed much of the remaining upside.  I wonder if there's a way to suss out pre-LIQ announcement candidates.

 

I do quite a bit of specialization in CEFs and periodically arbitrage the pure commodity funds CEF & GTU.  They're super simple to hedge against.  We should talk more one on one.

 

- vertek

 

 

Hi vertek,

 

These funds have made significant announcements in the last week or so.:  SGL, HYF, FDI, FTT AND RIT.  Happy hunting!

 

Thanks

Mark