You have not answered the question posed to this MB.. So PHK owns a lot of investment grade discounted bonds that will appreciate when the economy gets better or when the financial crisis abates..Why then is it priced at 70% over the market value of these bonds..bonds that anyone can buy easily and certainly other funds can buy as easily as PHK can.. In effect, your hopes of a strong move upwards are already being mortgaged by the huge premium to NAV. Suppose those bonds you mention go up by 60% from here (and this is not so easy to happen..)by tomorrow..where would be the incentive for the premium? Would you expect them to go up another 60% higher from there? so those bonds would trade and tiny YTM? What you will see is that PHK price will lag dramatically its NAV and its peers as that premium erodes over time..Just pure logic and the way markets operate long term..short term, we can certainly see anomalies like the rally of the past month..time will erode the premium , so the hedged trade of shorting pHK while longing any of its discounted peers will bear nice fruits long term.