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Non-Tech : CEF Closed End Fund Investing
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To: CusterInvestor who wrote (38)7/20/2021 3:47:16 PM
From: the traveler1 Recommendation

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CusterInvestor

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I have started something similar to your screens--see below

I would like to throw this out there to anyone interested that might have the resources to have some back testing capabilities. I have often read about studies indicating owning CEF's with discounts being a good strategy for total return etc.



So back in late June of this year I set up the criterion listed below and started screening in cefconnect.com--the plan was to screen weekly or monthly, or both, and stay invested in the top five funds that continue to meet the criterion. My problem is I have no back testing capabilities to gain confidence in the model or know to abandon it ASAP--LOL. It would be super interesting to know the record on this simple procedure over say the last 15-25 years or thereabouts.



Anyway the screening criterion is as follows:



I started by running the screen based on Fridays closing numbers--eg. weekly. Select the top 5 funds with the largest discounts to NAV that also pay a monthly dividend greater than xx% per annum. ( I arbitrarily set it at 7% when I started)



Buy equal monetary amounts of each of the five and stay invested until one or more drops out of the top 5--sell the drop outs at the open on the following Monday and replace them at the same time with the funds that took there place in the top 5 list.



That's it!
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