RE:RE:RE:RE:POSOne more thing in regards to ENS.
I think Middlefied did 5 new issues in 2021 and every time they did an issue, the share price of ENS would drop about $0.80 as I mentioned in the prior post.
The game was great for Middlefield as they kept increasing the asset base of the total fund (common and prefs) which produced bigger and bigger fees (0.6% of assets under management).
Eventually, the holders of ENS came to the realization that paying large premiums to the NAV for ENS was stupid because the shareholders kept taking it on the chin with every new distribution.
Now, ENS trades at about a 5% discount to the NAV. At a first glance, it looks like Middlefield were being greedy, but in reality, they were only taking advantage of ENS investor greed and stupidity in paying the large premiums to the NAV.
By keeping track of the live NAV and the daily share price of LBS, you always know the premium. As you keep track over time, you learn the trigger points when the fund manager will issue new shares. Knowing the trigger points allows you to sell and get out of the way just before the new issue. Then you can buy back in as the share price drops off more than it should. I did that for a few rounds with ENS but then I got to the point where I didn't think ENB was back to being fully priced.
I'm not in love with the bank and lifeco's as the total return (capital gain plus dividend) is solid but unexciting. However, rising interest rates typically help the finco's and the leverage of Splits can produce superior returns when the going is good. I just want to know when to step aside before new share issues. If nobody is keeping track of the live NAV, I guess I will have to do it myself which I was hoping to avoid.
either the brokers who were putting away each tranche to their unsuspecting clients in exchange for abnormally high commissions, or