Closed End Mutual Fund Advice Sought

[adios]

I bought CLM at about $6.00 a share two months ago. I've recommended it as it was a diversified equity fund, trading at a discount to net asset value (NAV), with a nice high yield. The good news is that it closed at $7.30 today and still has a nice yield. It's come off of it's high and is now trading at a PREMIUM to NAV which at that beginning of the week was about 12%. It's come down a little but still at a premium but a nice yield. Question, do you folks who trade CEF's routinely dump them when they trade at a premium to NAV or just hold on and hope it's one of those that trade at a premium for a long time? Why should a CEF trade at a premium? I guess management would have something to do with it.

[Ray Zee]

always dump when they are at a premium. as sooner or later they will fall below nav. you are gambling on how high it will climb above nav with a certain downside coming.
watch out for closed end funds as many charge too much vig. plus they screw you when they make an increase in shares as they force you to buy more as they dilute your holdings. problem is these things are made up for the profit of a group of people running them and not for the investors. but it is a good way to trade stocks of a group that you may not easily buy on the market. i did alot of it years back when few looked at them. but nowadys it may be a losing battle. but its certainly and easy way to get country funds and some closed funds are run by big outfits that dont tax you so much.