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0 0 0 -0.00071377072819034 0.000209084354722447 0.0036049026676279 0.0036049026676279 -0.00216294160057687
Stock impact report

SPE Vs. BRW: High Yields, Weak Compounding -- Neither Is Cheap Enough [Seeking Alpha]

Special Opportunities Fund, Inc (SPE) 
Company Research Source: Seeking Alpha
SPE is a fund-of-funds with engineered payouts, fee layering, and uneven, event-driven returns; BRW is more aggressive, complex, and relies on activist strategies and direct income. Neither SPE nor BRW acts as a compounder; both suffer from inconsistent distributions, complexity, and lack of price appreciation, keeping them at persistent discounts. SPE has recently outperformed BRW in total return due to better conversion of opportunistic gains, but neither fund is attractively priced relative to their risks. Klaus Vedfelt/DigitalVision via Getty Images In this article, I will discuss two funds that both work by buying CEFs for cheap, harvesting the income, and also making real gains when the discounts narrow. These funds - Special Opportunities Fund, Inc. ( SPE generates yield through fund-of-funds holdings and discount narrowing, resulting in uneven, event-driven income; BRW uses direct, opportunistic assets and activist overlays, creating higher yield but greater volatil Show less Read more
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