I had an article about closed end funds run on TheStreet.com today.
This chart was sent along to me in response to the article from TFS Capital which is the firm that runs the TFS Market Neutral Fund (TFSMX).
The point of my article was in times of crisis (real or perceived) CEFs usually get crushed.
I have a couple of CEFs in my ownership universe and they are no exception.
One reader left a couple comments on this morning’s blog post (I’m guessing he read the TSCM post?) calling CEFs weapons of financial destruction.
Anyone owning too many of them would certainly feel that way. I used to write about them more when the ETF space was much smaller. I talked about moderation, which I believe is important in all aspects of investing, but it would not be surprising to hear about people owning to many of them. For some people even one may be too many.
Sorry, let ‘er rip too early. The chart shows the point made in the article. Every so often CEFs puke down and scare the hell out of people. After that they either come screaming back work work back slowly. Coming back after this crisis is a good bet but I have no idea if they will scream back or work higher slowly.