The below text is licensed to Covestor Ltd. (“Covestor”), by Dan Plettner. Such text may be disseminated only by Covestor. Dan Plettner invests and receives income for securities research, including “buy-side” research. Dan licenses his own real time trading data to Covestor Ltd. (“Covestor”). Covestor is a Registered Investment Advisor that uses Dan Plettner’s data to create the Core, Long Short Opportunistic, Tax Advantaged Income, and Taxable Income models for its clients. Dan’s words should not be misconstrued as investment advice.
On August 23rd, I added 2 new positions to my Core account, whose goal is to provide significant risk-adjusted total return outperformance versus the S&P 500. Both are consistent with my current allocation interests, which I intend to discus when writing my next monthly investment reports.
In DWS Dreman Value Income Edge Fund (DHG), observation of Western Investment’s Activism history leads me to expect that a historical proxy campaign is likely to be renewed and be effective in 2011. In the interim, my $12.94 and $12.96 purchase prices represented at least a 10% or better discount to the $14.44 August 23rd closing NAV. I perceive that discount an attractive entry point, particularly in comparison to other Closed-End funds with significant high yield bond exposure. I also recently added DHG to Taxable Income.
In JPM PRX (also commonly recognized as JPM-X or JPM.PR.X), I am choosing a JP Morgan exchange traded income instrument based on my interest in its profile of income, perceived stability, and call risk relative to available alternatives. I made alternate specific selections of JPM PRJ (JPM-J, JPM.PR.J) and JPM PRK (JPM-K, JPM.PR.K) for in an alternate account focused on Taxable Income. I continue to be mindful of overall liquidity for individual positions and associated concentration risk, as I believe heavily in my choice to blending styles within my discipline.
