Thursday, June 25, 2009

GLO - An Overlooked Fund

Most people have never heard of Closed End Funds (CEFs) and that creates opportunity for the rest of us.

Closed End Funds are like Mutual Funds except they trade openly during the day, and the price is set by buyers and sellers. They trade for what people are willing to pay.

When CEFs become popular they can sell for more then they should and when they aren't they can sell for less than they should. That brings us to Clough Global Opportunities Fund (GLO).
GLO is on sale. It is trading at almost 20% off.

GLO is managed by Charles I. Clough, Jr. Founder, Clough Capital Partners LP and former chief investment strategist, Merrill Lynch & Co.

The investment objective of the Fund is to provide a high level of total return. The Fund seeks to pursue this objective by applying a fundamental research driven investment process and will invest in equity and equity-related securities as well as fixed income securities including both corporate and sovereign debt in both U.S. and non-U.S. markets. The Fund is flexibly managed so that depending on the Fund investment adviser outlook it sometimes will be more heavily invested in equity securities or in debt or fixed income securities. Investments in non-U.S. markets will be made primarily through liquid securities including depositary and exchange traded funds.

It is a go anywhere, flexible fund with a good manager paying over 8% and selling at a 19% discount. Mr. Clough has a proven record and is invested in the right areas such as Energy, China and Brazil. As the world economy recovers, these are areas I want to own and GLO has them at a discount.
I don't own it yet, but I will.
Chart

click chart to enlarge



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