Closed-end funds trading at deep discounts to NAV — structural arbitrage
CEF discounts to NAV historically mean-revert. Get NAV appreciation PLUS discount compression while collecting 6-10% yields
| Symbol | Action | Vol | Stop Loss | Take Profit | Size | Links |
|---|---|---|---|---|---|---|
| PDI | BUY | 15% | 9.4% below entry | 4.0% above entry | 20.9% | TVYH |
| PTY | BUY | 13% | 7.8% below entry | 3.3% above entry | 25.2% | TVYH |
| BST | BUY | 21% | 13.4% below entry | 5.7% above entry | 14.7% | TVYH |
| BSTZ | BUY | 24% | 14.9% below entry | 6.3% above entry | 13.2% | TVYH |
| UTF | BUY | 15% | 9.1% below entry | 3.9% above entry | 21.6% | TVYH |
| UTG | BUY | 18% | 11.0% below entry | 4.7% above entry | 17.8% | TVYH |
| GOF | BUY | 17% | 10.5% below entry | 4.5% above entry | 18.7% | TVYH |
This strategy is suitable for passive investing. - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from 37% drawdown to deliver positive long-term returns. - Exit rule: Review annually. Exit if strategy underperforms its benchmark for 3 consecutive years.