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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  Read Replies (1) of 59
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 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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