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Pimco High Income Fund Pimco Hi Message Board

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  • chiquitbumbalabimbomba chiquitbumbalabimbomba Oct 8, 2012 3:48 PM Flag

    I feel really stupid

    Wow, self-delusion & stupidity really are everywhere.

    At these premiums, you are paying them management fees to have your own capital returned to you. At a 70% premium, you will probably get back substantially less than what you invested.

    And Bill Gross is a liar for not calling it like it is.

    At least the Gabelli people are honest.

    Do yourself a favor and at least read up on what a closed-end fund actually is.

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    • Yes I do feel stupid standing in that bank line month after month.
      Year after year. The drive-thru is too narrow for my truck.
      Damn irritating.......

    • I agree with most of what you say, chiq. But the management (gross) has really little control over what price premium it trades at.

      And yes, most people dont know what a closed-end fund is.

      They are paying for a pot of assets worth exactly $8.38 today (and not a penny more), plus they are paying approx $5 (approx 70% premium) to have pimco manage it for them. Other similar funds managed by pimco have a very small premium.

      and they are paying pimco a management fee approx and expense fee, of over 1%, in addition to paying for commissions on buying and selling of assets in the fund.

      This was not a scare article in Barrons, as some have described it, but an analysis of price, value, and the history of what has happened to overvalued funds in the past(this fund was first or second most overvalued over the past year or so)--ie, they have underperformed the market.

      There are ZERO examples where they (high premium funds) have outperformed the market (ie their category) over time. If anyone has an example, please post it and prove me wrong. The cornerstone funds are just one of many examples of premium collapse resulting in substantial losses.

      • 1 Reply to dan86droon
      • Zero? lol How about PHK ? !!!! Try compounding 10%+ since 2003 when it was $13-15 range and it has paid same $.122 dividend. 70% is the premium investors are willing to pay for a stock that has paid same dividend since inception... its a measure of confidence, but Bill Gross said that, what does he know. Go buy the discounted reits and other closed end funds! can get real bargains there !!!!

        Most wealthy retired investors or large ETF/mutual funds, Vanguard, get the 10% each month whether they add to their position of not....+10% no matter when they get in. Gross will find smart investments to fund PHK and yield the large divis! Go watch the NAV and put your money down on those discounted funds you seem to love for now. Watch the stock price, go buy Coke or Caterpillar...how u doing.???

        What is 10% compounded for 9 years?????

 
PHK
11.93+0.20(+1.71%)May 4 4:02 PMEDT