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- Title
Closed-end funds versus market efficiency.
- Authors
Anderson, Seth Copeland
- Abstract
The article discusses possible trading strategies that would enable an investor to earn excess rates of return on closed-end funds. The most successful investment strategy using all funds called for shares to be purchased when the discount exceeded 20 percent and to be sold when the discount dropped to 15 percent. Each of the buy-and-sell point strategies for all funds provided higher returns than an investor would have received from the Standard and Poor's 500. Almost all the buy-and-hold strategies outperformed the market. An investor should not expect consistent profits from the utilization of price filter rules using closed-end fund shares. Investors can improve the likelihood of trading profits by employing strategies using closed-end fund shares.
- Subjects
CLOSED-end funds; MUTUAL funds; PORTFOLIO management (Investments); INVESTMENT analysis; ASSET management; INVESTMENTS; RATE of return
- Publication
Journal of Portfolio Management, 1986, Vol 13, Issue 1, p63
- ISSN
0095-4918
- Publication type
Article
- DOI
10.3905/jpm.1986.409078