As one of three income oriented portfolios, the Huygens turned in an excellent January with a gain in excess of 11.0%. I don’t anticipate this increase will continue.
This review or update will show a few necessary changes as two Closed-End-Funds (CEFs) are not meeting the yield requirement.
Huygens Investment Quiver
Since the last review all shares of FXBY were sold out of the Huygens. My recommendation is to avoid FXBY as we pay commissions for this particular CEF.
A limit order is in place to sell 100 shares of DHF as the yield dropped below 8.0%. Shares of TDF were recently added using cash from dividends that flowed into the portfolio. The current yield is over 10.0%.
Huygens Performance Data
The Huygens has not quite broken into positive territory over the past 13 months, but it is far outperforming all six benchmarks tracked using the Investment Account Manager software. If the CEF managers can just maintain the current prices over the next month, the Huygens should move into positive territory once the first quarter dividends are recorded.
Huygens Risk Ratios
Both the Information Ratio and Jensen Alpha are higher than they were in February of 2022. However, it will take several months of higher Jensen values before we see a positive slope.
Of the five ratios, the Jensen is the most important.
Keep in mind the two principle requirements for these income oriented portfolios. 1) The yield must exceed 8.0%. 2) The price of the CEF is lower than the net asset value.
For this data, go to CEF Connect. If readers have questions, post them in the Comment section provided with each blog post.