SlavkoSereda/iStock via Getty Images Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund [CEF] market activity from both the bottom-up - highlighting individual fund news and events - as well as the top-down - providing an overview of the broader market. We also try to provide some historical context as well as the relevant themes that look to be drivin...
SlavkoSereda/iStock via Getty Images Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund [CEF] market activity from both the bottom-up - highlighting individual fund news and events - as well as the top-down - providing an overview of the broader market. We also try to provide some historical context as well as the relevant themes that look to be driving markets or that investors ought to be mindful of. This update covers the period through the second week of April. Be sure to check out our other weekly updates covering the business development company [BDC] as well as the preferreds/baby bond markets for perspectives across the broader income space. Market Action CEFs rallied strongly for the week with all sectors except MLPs seeing higher NAVs. Discounts mostly tightened as well. Systematic Income Discounts have tightened over the last couple of weeks and trade right on top of their historic average, in aggregate. Systematic Income Market Themes Saba called off its planned merger between its CEFs BRW and SABA. This is a great result for investors for two reasons. One, it keeps relative value plays between the two funds alive. The two funds are quite similar in terms of their underlying assets however their valuations can temporarily diverge. Systematic Income CEF Tool And two, it allows SABA to remain outstanding. SABA has an unusually low fee structure due to two factors - the low headline fee of 0.67% is much more common for tax-exempt funds rather than taxable funds where fees tend to run in the range of 0.8-1.2%. And the fee is levied on net assets rather than total assets. SABA remains a much better option than BRW for this reason and because it trades at a wider discount which shouldn’t be the case given its lower fee profile and a similar allocation. Market Commentary RSF completed its usual quarterly tender offer with a pro-ration factor of 21%. That’s close to double the previous figure. The fund remains an att...
SlavkoSereda/iStock via Getty Images Last week we witnessed the power of the Strat of Hormuz, and who controls it. After being closed for two weeks, the Iran government decided to reopen it to ship traffic, with certain rules and conditions in place. That’s all it took for the market to go on a tear – up 5 days in a row, 3 new all-time-highs, and up 4.5% for the week. As usual, there were winners ...
SlavkoSereda/iStock via Getty Images Last week we witnessed the power of the Strat of Hormuz, and who controls it. After being closed for two weeks, the Iran government decided to reopen it to ship traffic, with certain rules and conditions in place. That’s all it took for the market to go on a tear – up 5 days in a row, 3 new all-time-highs, and up 4.5% for the week. As usual, there were winners and losers last week, but mostly winners as the rising market lifted most assets. I will look at the market from several angles to find out where the money was going, and where it came from. S&P 500 Last 4 Weeks One look at this chart reveals the strength of last week’s rally. As recently as March 30, the S&P 500 was trading at 6528. In the span of just 2 weeks, we have gained nearly 600 points. That’s not a record, but it’s very impressive. S&P 500 last 4 weeks (ZenInvestor.org) Zoom out to 12 months When we look at the market on a month-by-month basis, we can see how powerful this rally has been. April is now the best month of the last 12. S&P 500 monthly returns (ZenInvestor.org) S&P 500 drawdowns Drawdowns are gone. We made 3 new highs – Wednesday, Thursday, and Friday. S&P 500 drawdowns (ZenInvestor.org) A look at the bull run since 2022. If you were lucky enough to have invested a sizable amount at the end of the last bear market, you would have doubled your money in 3.5 years. That’s a powerful bull run. Bull run since 2022 (ZenInvestor.org) Major index performance last week Nasdaq led the way higher, thanks to Big Tech. The surprise was Micro-caps, which came in second with a 6.8% gain. This is further evidence of a broadening rally. Index returns last week (ZenInvestor.org) Major asset class performance. Blockchain companies took off, as bitcoin and other cryptocurrencies joined the rally in equities. Asset class returns (ZenInvestor.org) Equity sector performance Tech was the hottest sector, again led by the Mag 7 stocks which are back in fashion once again. The b...
It's been a phenomenal run for investors holding shares of AI chipmaker Nvidia (NASDAQ: NVDA) . The company has enjoyed an unprecedented demand boom, helping its stock soar last year and rise even more in 2026. But what happens if this demand boom goes through a period of consolidation as the market for AI data centers matures? When supply catches up, or if hyperscalers pull back on their massive ...
It's been a phenomenal run for investors holding shares of AI chipmaker Nvidia (NASDAQ: NVDA) . The company has enjoyed an unprecedented demand boom, helping its stock soar last year and rise even more in 2026. But what happens if this demand boom goes through a period of consolidation as the market for AI data centers matures? When supply catches up, or if hyperscalers pull back on their massive capital expenditures , Nvidia's pricing power could erode -- and margin compression could follow. That's why, when I look out over the next decade, I'm drawn to a very different kind of growth stock -- one with persistent market share gains, a structural low-cost advantage, and arguably less cyclical risk to its long-term profit margins. Continue reading
Erik Isakson/DigitalVision via Getty Images Investment Thesis CoreWeave ( CRWV ) stock is about 80% up within almost three weeks, starting from March 30, 2026. Investors wonder if, after this sharp price increase, the stock has more room to grow or not. The answer relies on what type of investor you are and what your risk tolerance is. In my opinion, the stock is still undervalued based on the com...
Erik Isakson/DigitalVision via Getty Images Investment Thesis CoreWeave ( CRWV ) stock is about 80% up within almost three weeks, starting from March 30, 2026. Investors wonder if, after this sharp price increase, the stock has more room to grow or not. The answer relies on what type of investor you are and what your risk tolerance is. In my opinion, the stock is still undervalued based on the company’s long-term potential due to CRWV transforming from a bare-metal provider to an end-to-end hardware and software provider. In my last coverage , I pointed out that the company faces significant risks, such as financing leverage, negative cash flow, and execution risk. Despite this, stock jumped by over 50%, as the company has taken significant steps towards de-risking in terms of leverage and execution. At the same time, the inference phase of the AI cycle, along with advanced bare-metal offerings and the expansion into software solutions, creates room for further revenue expansion and cross-selling opportunities. Quick Overview of FY25 Results: Profitability and Customer Concentration Remain Major Risks The company reported revenue of $5.1B in FY25, representing 168% YoY growth, while a record backlog of $66.8B -reflecting a 342% YoY growth- gives long-term revenue visibility to investors. The first weak point arises from the fact that CRWV remains unprofitable due to its need for high CapEx, in the range of $15B , to support the development of data centers in bare-metal terms. Q4’25 Presentation The second concern is the company’s high debt of $29.8B with just $4.2B in cash. However, CRWV, via its long-term agreements with hyperscalers, has managed to reduce its weighted average cost of capital by 600 basis points since 2023, reflecting that banks and lenders in general can see a healthy and profitable business model in the long run. Despite these reductions, interest expense reached $1.3B in FY25 , up 240% YoY. Also, CRWV has high customer concentration, with one cu...
Spanberger Signs Unconstitutional Bill To Strip Confederacy-Linked Groups Of Tax Exempt Status Authored by Jonathan Turley, There has been growing criticism (and falling poll numbers) of Virginia Governor Abigail Spanberger after she ran as a moderate and then immediately veered to the far left after her election. Once in power, Spanberger and the Democrats unleashed a slew of tax increases, moved...
Spanberger Signs Unconstitutional Bill To Strip Confederacy-Linked Groups Of Tax Exempt Status Authored by Jonathan Turley, There has been growing criticism (and falling poll numbers) of Virginia Governor Abigail Spanberger after she ran as a moderate and then immediately veered to the far left after her election. Once in power, Spanberger and the Democrats unleashed a slew of tax increases, moved to eliminate all but one Republican district in the purple state , passed an array of anti-gun laws, and enacted other controversial measures. One of these measures is a clearly unconstitutional effort to strip pro-Confederate groups of their tax exemption. This week, Spanberger signed HB167 , the law that eliminated the tax exemption for various confederacy-linked groups , including the Virginia Division of the United Daughters of the Confederacy, the General Organization of the United Daughters of the Confederacy, the Confederate Memorial Literary Society, the Stonewall Jackson Memorial, Incorporated, the Virginia Division, Sons of Confederate Veterans, and the J.E.B. Stuart Birthplace Preservation Trust, Inc. Notably, as soon as they came into power, Democrats also passed House Bill 1377 to move against the Virginia Military Institute, including appointing a task force that could effectively close the historic school. Many Democrats have previoulsy sought to close VMI despite its unique and inspiring history in training some of our most famous military leaders, including General George Marshall. Liberals want to close the school due to its history from the Civil War. Spanberger recently expressed support for the effort but returned the bill with suggestions to use the board of directors to carry out the review. Spanberger’s substitute eliminates that task force entirely and instead directs VMI’s own board of visitors to carry out the review. The board would be empowered to carry out a fairly hostile and open-ended agenda, including to “distance [VMI] from the Lost Cause...
Meta Platforms plans to cut about 10% of its global workforce, or roughly 8,000 roles, starting May 20. Further reductions are expected later in the year as the company looks to manage rising AI infrastructure costs. Meta intends to use AI tools to automate more management and operational functions across the business. Meta Platforms, NasdaqGS:META, is making these changes while its shares trade a...
Meta Platforms plans to cut about 10% of its global workforce, or roughly 8,000 roles, starting May 20. Further reductions are expected later in the year as the company looks to manage rising AI infrastructure costs. Meta intends to use AI tools to automate more management and operational functions across the business. Meta Platforms, NasdaqGS:META, is making these changes while its shares trade around $688.55. The stock has recorded a 9.3% return over the past week and 16.0% over the past...