A CLM/CRF holder is selling because the NAV discount widened to roughly 25% below share price and is considering SPYI to replace the lost dividend income.
Unpriced research observations (excluded from Calls and Returns):
CLM — AVOID The author has held CLM since 2024 and is about to sell because the NAV discount widened from 3-4% below share price at purchase to roughly 25% below share price now. The stated mechanism is that the fund's distribution is eroding NAV relative to market price, which the author considers unsustainable. The author notes they will still make a slight profit on share price plus collected dividends. resolved_asset_type_mismatch
When I took a look at the present NAV, I found that the NAV was close to 25% below stock price.
That seems ridiculous to me and I am about to sell.
CRF — AVOID The author holds CRF alongside CLM since 2024 and is re-evaluating both after noticing the NAV discount widened to roughly 25% below share price. The stated concern is that the distribution is eroding NAV relative to market price. The author is about to sell. resolved_asset_type_mismatch
I have been holding CLM and CRF since 2024 and was happy with the dividend returns until I began re-evaluating my holdings.