Bali, Indonesia
The Hawking Portfolio is a “Buy-and Hold” Income generating portfolio built using Closed End Funds (CEFs) with high distributions. Usually, the only action required is to re-invest the dividends received so as to promote geometric growth.
Current Holdings look like this:
with performance like this:
Over this ~30 month period, the Hawking Portfolio has outperformed the benchmark AOR fund by ~6% thanks to the consistent high dividends.
At present I have ~$1,200 from this months “income” to reinvest – I will be adding additional shares in KYN and CPZ.
David
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Hi Lowell,
What criteria is used for selecting which funds to reinvest dividends?
Thanks,
Bill
Bill,
The Hawking portfolio is managed by Hedgehunter so he may have a different response.
When I’m selecting Closed-End-Funds (CEFs) I look for securities that are yielding dividends of 8% or higher and are currently priced below their Net Asset Value (NAV). Not a deal breaker, but I prefer leverage below 25%.
Lowell
Thank you
Bill,
For this Hawking Portfolio I use a very simple crude table as shown in the link below. It justs identifies the yield and discount and uses (yield – discount) to rank. The performance shown in the post has been the result. Since I don’t want a lot of churning I don’t do a lot of rotation and rarely sell one fund to replace with another (even if it comes to the top of the list) – unless something really significant changes.
https://www.dropbox.com/s/6jar6lj192cgsfa/Hawking%202022-02-05_08-56-24.png?dl=0
David