The Liberty All Star Equity Fund (USA) is a (RQNAV) fund. The distribution decreased from $0.18/qtr. to $0.17/qtr. 'CEF Mastery' veterans are well aware of my love/hate relationship with these types of funds. Just an FYI, if you own any (RQNAV) funds, expect the possibility of similar distribution reductions at next declaration date. This is the nature of these funds and is not to be considered a sign of overall weakness in the funds. Read link below for a list of (RQNAV) funds.

Here is a recent report to help you understand (RQNAV) funds. Scroll to the topic title below.

Rolling Quarterly NAV's (RQNAV's)

The above article has also been posted to the 'Help' tab in 'CEF Mastery,' along with some other useful links.

Be Mindful of Market Cap

A member reached out to me recently about a nightmare scenario he recently experienced and asked if some type of indicator could be added to 'CEF Mastery' to avoid what he had just gone through. I won't go into the gory details, but let's just say he needed a large sum of funds by a certain date, and because of restrictions placed by his broker, it took him several days to free up the funds.

Unfortunately, there is no better indicator than market cap. The sad reality is that funds with a smaller market cap will have less interest, and therefore much lower liquidity.

Closed end funds are not suited for panic selling

The member scenario mentioned above was not a panic sell situation but could've had disastrous consequences.

Large Market Cap Funds Won't Matter Much in a Major Selloff

Large market cap funds will provide a liquidity cushion above the smaller market cap funds, but don't assume that just because you're invested in the largest market cap funds that you will be exempt from broker restrictions.

I asked AI for a list of reasons why a broker would limit the number of shares I could sell. I posted it in a Microsoft Word document, along with a couple steps that could help you avoid some of the restrictions in the document. You can find a link to the document at the bottom of this post.

'CEF Mastery' Notes

'CEF Mastery' will be adding useful notes throughout the program. Whenever you see a little red triangle in the upper right corner of a cell, hovering over that cell will reveal information pertaining to the information in the cell.

BDC Scorecard

The BDC Scorecard is free to everyone who subscribes to this newsletter, which is also free. Click on the 'View content' button at the bottom of this page to be redirected to a .pdf download and enjoy.

Score update for Saratoga Investment Corp. (SAR). They just recently filed for the period ending November 2024.

Just When I Thought I Was Out

(AIO) Pulled Me Right Back in Again

Well, I finally came to terms with letting Virtus Artificial Intelligence & Technology Opportunities Fund (AIO) go on November 27, 2024, with a measly (sarcasm) 94.0% total return.

Closed End Fund Strategies Using 'Divi-X'

And it appeared to be the right call at the time.

Had I not sold (AIO) and held on Jan. 13, 2025, the pullback would have reduced my total returns to 80.08% (still considerably higher than w/o 'Divi-X' at 53.01%). 'Divi-X' golden rule #1, set a percentage stop/loss when you buy using 'Divi-X,' and stick to it should your position immediately go south after entering. Not later in the trade (2+ years).

But because I sold at $24.24/share on 11/27/24, I was able to buy back in at $23.11 on Jan. 13, 2025, reducing my cost basis even further to $17.02.

There was no science behind my exit strategy on (AIO) other than I thought the fund went too high too fast and I wanted to lock in profit. I sold in May 2022 because 'Golden Rule #1 told me too, but each subsequent sell was only because I thought the fund went too high too fast and look how many times I was able to get in and out using that strategy, with each subsequent trade improving my overall returns.

I was hoping to hold for a while (collect more higher yield), anticipating a slow climb back up to my 'SELL' price on 11/27/24 of 24.24 but it popped considerably, and I got out again $0.02 higher than my 'SELL' price on 11/27/24.

Now, I'm currently forced to settle for a meager 122.4% (more sarcasm).

I set a new pullback price target of $23/share. If it happens in the short-term, I might get back in again, if the fundamentals are still holding up.

Right now, (AIO) is in a downward trend indicated by the lower highs and lower lows. The two white trend lines I drew are forming a descending triangle which, statistically breaks to the upside. The question is, how many lower highs and lower lows before it breaks out of that forming triangle? If it meaningfully breaks below the lower white line, price target is well below the $23 price target I set and could be an excellent buying opportunity, if it breaks to the upside, it doesn't present enough upside potential to make me want to venture back into the fund.

**** Technical Analysis is not required for use in 'CEF/ETF Mastery,' or the 'Divi-X' system. I only show this to let you know where my mindset is regarding a particular position. If you find this type of content useful, let me know. Of course, I have to add the disclaimer that I could be completely wrong, and this is not financial advice. ****

The 'Divi-X' System High Yield Portfolio Performance

This portfolio was created solely for the purpose of this weekly update. It is real money. It is intended for informational purposes only.

Inception date: 07/19/23

Portfolio performance as of Today @ 9:45 a.m. est. Distributions are 'Not' reinvested.

The 'Divi-X' high yield portfolio is an aggressive use of the 'Divi-X' system. There are more conservative uses of the 'Divi-X' system that can have a very satisfying result on your returns as demonstrated in the following video.

The 'Divi-X' System - Dividends on Steroids

The 'Divi-X' system utilizes leverage and can be considered very risky. Use at your own risk! The 'Dividend Times' makes no claim that using the 'Divi-X' system will outperform the market.

I am in the process of creating a worksheet of 'The 'Divi-X' High Yield Portfolio' holdings which I will eventually be posting here as a download for transparency. It will go into detail about positions held, why they were sold, and any other pertinent information. That info is too lengthy to post every week in a newsletter.

None of the information in this post should be construed as financial advice. Use any information contained within at your own risk.

Feel free to send me questions or comments. Have a wonderful weekend.

Lee

TheDividendTimes@outlook.com

803-659-1232

0 comments

CEF Mastery Distribution Change Report 05/30/25

CEF Mastery Distribution Change Report 05/23/25

CEF Mastery Distribution Change Report 05/16/25

CEF Mastery Distribution Change Report 05/09/25

CEF Mastery Distribution Change Report 05/02/25

See all posts from The Dividend Times