by Anura Guruge
1/ BJBHX $0.26 cap gains for 2014.
2/ BJBHX stopped hemorrhaging for a day.
3/ BJBHX depressing news.
4/ BJBHX: sticking it out till 2015.
5/ BJBHX has decent December 2013.
6/ Uncontrollable Infatuation With BJBHX.
7/ BJBHX: I Bailed With Regret.
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Click to ENLARGE. Underlying chart and data from, of course, MarketWatch.com.
Well it had been on the cards for months. BJBHX was going nowhere, but down. Interest rates are due to rise and according to all junk bonds were due to take another hammering as that happened. The dividends, always BJBHX’s one redeeming trait, were also beginning to dry up. I could NOT take it anymore. I will be the first to admit that BJBHX helped — nay, enabled — me to weather the 2008ish financial crisis. BJBHX did good, very good, in those dark and uncertain times.
But things have changed and with that BJBHX’s value-proposition. I started to wind-down my position about 7 weeks ago. I did not want to pull-out, overnight, cold turkey. Why? I did not want to hurt my fellow shareholders! Yes, I am strange. I have never denied it. I am what you might call an altruistic investor. I do not like to hurt others. Yes, I know. Crazy. But then again I am also not greedy. To also be fair, most of the time I do not have anything to worry about since the most I usually have to invest is around $2 (as you might know from my posts). But in the case of BJBHX I had a few shekels in the pot. If I had withdrawn it all, one night, as I was certainly entitled to do, since I have held these shares for years, it could have hurt the NAV. So I opted to withdraw in batches to limit the outflow. I finally made my last withdrawal as soon as we got back from Arizona. I am GLAD I did.
I am using the proceeds from BJBHX to play options. Yes, the ability to write more options was another reason I wanted out of BJBHX. I think I have a problem. I am addicted to writing options! As far as addictions go this is not too bad or painful. I only do out-of-the-money options using good underlying stock. It is fun. It is white-collar gambling. But with the options I stand a chance to make some money, and that had ceased to be the case with Aberdeen (Artio) Global High Income Fund. So bye, bye blackbird. IF I never own another Artio product, that might prove to be too soon. Coincidentally, or otherwise, that is when the rot set in, when Artio acquired Aberdeen,
I also, a few weeks earlier, be it, also got rid of all my shares in YACKX, Yacktman Fund. I had been a (secret) YACKX holder for a longtime. 7+ years I think. It was the fund I never talked about. I had found it after years of diligent research and I didn’t want it spoiled. It (again prior to an acquisition) used to be a little champ. Delivered on its promise and dolled out some healthy dividends. It too has since lost its way. I didn’t, in reality, have much invested in it and as such it was no big deal closing it out, overnight. I did that about 6 weeks ahead of BJBHX. So that is bye, bye to two mutual funds. I now have just three more, one of them NOIEX, ‘Northern Income Equity Fund’, that no longer generates income! I have sold some NOIEX shares in 2015 and I am pretty sure that NOIEX will cease despoiling my portfolio within the next few weeks. I think my patience has finally started to run out. That will leave me with just two funds, one that I just acquired at the end of 2014. It hasn’t done much but it shows promise. The other I had had for a ‘long’ time. Maybe 4+ years. It delivers on what it says in its prospectus.
AMG Yacktman Fund, YACKX, data from MarketWatch.com. Click to ENLARGE and look.