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Cohen & Steers Tax-Adv Pref Secs and Inc Fund V.PTA


Primary Symbol: PTA

The Funds primary investment objective is high current income. The Funds secondary investment objective is capital appreciation The Fund seeks to achieve its investment objectives by investing at least 80% of its managed assets (i.e., net assets plus assets obtained through leverage) in a portfolio of preferred and other income securities issued by U.S. and non-U.S. companies, which may be either exchange-traded or available over-the-counter. In pursuing its investment objectives, the Fund seeks to achieve favorable after-tax returns for its shareholders by seeking to minimize the U.S. federal income tax consequences on income generated by the Fund. There can be no assurance that the Fund will achieve its investment objectives.


NYSE:PTA - Post by User

Comment by mrpanickon Feb 23, 2015 3:26pm
81 Views
Post# 23456204

RE:hedging

RE:hedgingI think they don't hedge for a couple of reasons.  Unlike many US companies that hedge, PTA doesn't have any balance sheet leverage.  Hedging would make more sense as they become a larger company with production from more fields, but even then I don't think they would hedge more than half expected production.  Hedging could be a problem if for exampe Putumayo production got shut in.  Hedging Las Maracas and other Llanos Basin areas (as they have more production to hedge) would make sense since production there is not subject to interrruptions.  The above illustrates the importance of the new Putumayo transportation routes to Ecuador which improves reliability as well as reducing costs.  Maybe they could hedge more at PUT once  things are more reliable.
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