Staying long with conviction


Author: Dan Plettner

Covestor models: MLP Direct Ownership, Taxable Income, Well-Intentioned Activism, Long/Short Opportunistic, Core

Disclosure: Long GCH

Under-invested portfolio managers are contemplating whether to engage in a trading strategy called  “window dressing” to improve returns or to demonstrate resolve by staying on the sidelines.

Not me. I have stuck with my investment style, and frankly, I’m more interested right now in whether my favorite baseball team earns the top playoffs seeding than which way window dressing closes the market quarter.

Analysts and commentators predicting the death of equities are only providing a favorable backdrop for the broad market. Another round of quantitative easing by the U.S. Federal Reserve has added fuel, too..

I recently published an article about one of my holdings, Greater China Fund (GCH). To me, this holding presents as a case where a bad board of directors appears to be nearing the end of their capacity to harm shareholder value.

You can go to the Performance Detail charts to view the 3rd Quarter performance across my models. (MLP Direct Ownership , Well Intentioned CEF Activism, Long/Short Opportunistic, Taxable Income, Core).

The investments discussed are held in client accounts as of September 24, 2012. These investments may or may not be currently held in client accounts.The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or that investment decisions we make in the future will be profitable.

Certain of the information contained in this presentation is based upon forward-looking statements, information and opinions, including descriptions of anticipated market changes and expectations of future activity. Covestor believes that such statements, information, and opinions are based upon reasonable estimates and assumptions. However, forward-looking statements, information and opinions are inherently uncertain and actual events or results may differ materially from those reflected in the forward-looking statements. Therefore, undue reliance should not be placed on such forward-looking statements, information and opinions.

Author profile

Dan Plettner
Dan Plettner
For more than 14 years I've focused my investing and research efforts on Closed-End Mutual Funds, called CEFs. They represent an alternative way to invest in stocks and bonds. CEFs frequently trade at a discount relative to the price of fund’s underlying portfolio, which I personally see as a way to own stocks and bonds at a discount to their underlying value.

I previously worked as a closed-end fund product specialist at Morgan Stanley. More recently, I provided independent closed-end fund research to institutional investors. I have written more than 50 articles regarding closed-end funds and am frequently quoted in the media.

My goal is to invest in funds that I believe offer a favorable mix of risk versus potential reward. I attempt to earn a profit when the gap between the market price and the net asset value of a fund narrows.