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Without stating the name, what's your favorite stock?


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I like things that float lately.  My 4th biggest position is a Container Shipping company with newer ships which restructured it's debt and balance sheet recently. 

"There are only three ways to get an advantage over your competitors in this business"


What are they? robert asked


"[1]Pay less for your ships, [2]pay less to operate them or [3] pay less for your capital."


From "The Shipping Man"


They should have an advantage on the number 3 and the new chairman has a history (in another business) of buying up assets on the cheap and turning them profitable, which should help with number 1 in a downturn.

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In Haiku Form:


Half of NAV

Pays a Growing Div

Dead Money


In Institutional Money Manager Form:

Contributing to our YTD underperformance relative to indices is our longtime position in Closed-End-Fund X, which we have held since 2013. Since its poorly timed 2007 IPO, CEF X has delivered an 11.5% annualized total net asset value per share growth and currently sports a sustainable low double digit ROE, despite having consistently had a large percentage of NAV in cash over the past three five and ten years. Despite this solid investment performance, CEF X trades for approximately half of its stated net asset value, much of which consists of third-party audited interest in insitutional alternative investment funds. Additionally, the Fund pays a dividend equal to 20-30% of recurring earnings, which on the depressed share price is equivalent to a 6% yield. Fund management, which owns close to one third of the fund's shares, has further returned to cash shareholders by purchasing over one-third of shares outstanding over the past decade. We blame the lack of market enthusiasm on poor liquidity in the name, an unfavorable external management structure, as well as concerns over the fund's exposure to high-risk structured credit/CLO equity, which comprises 14% of net asset value. We view all of these risks as more than priced in and are happy to continue to be paid to wait for a potential re-rating over the next few years. Catalysts include the forecasted IPO of the company's largest asset and continued diversification and growth of the Fund's investments.


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