UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35367  
Subject: Re: Closed End Bond Funds Date: 5/1/2000 12:14 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Closed end bond funds that have a given pay out date sound like a unique situation. Discounts from NAV for many closed end funds is a fact of life. Unfortunately this is a perpetual situation. So there is no guarantee the discount will ever go away.

While its great strategy to buy discounted shares and force management to liquidate, I think this takes significant capital to accomplish successfully. I am aware of one closed end stock fund, Baker Fentress, which Warren Buffet was able to force into liquidation due to low asset value. (In essence, when closed end funds sell at a discount, that is a vote of no confidence in the skills of management and their ability to generate future value.) But few individuals have the clout to force liquidation. Some pension funds do.

There may be some legal requirements for SEC filings if you make the attempt. Presumably you get a list of shareholders, read the companys by-laws on what is required to get issues on the agenda of the shareholders meetings and vote on them. Then you figure out how to get support of other shareholders for your liquidation proposal. I think you are suggesting a proxy fight. Its an interesting idea. Perhaps individuals have more power than most suspect.

Good luck with the idea. I would be willing to co-operate if someone can come up with details of how to do this.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Smuggling Rice and Garlic
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement