Let's revive this message board. I watched and
waited and bought HQL in the low 10s and have watched it
rise ever since. This closed-end fund has a good
biotech exposure and is a good new technology bet. The
fund has been dormant together with the sector but
things seem to be getting much better. Any opinions out
...didn't see the date of your post...my, my,
my...this family doesn't get together very often, does it.
Might help if there's more action here guys, so other
people visiting might actually know there's something
going on. The previous was my first post. First board
I've been on that covers an entire year on one page!
Looking to buy, but you guys look like you've been put to
sleep...hoping this is not a reflection of the company. Maybe
this stock is a real sleeper, as opposed to
It's NOT a fund. It's a depositary receipt. Very
different. Not actively managed, no forced capital gains
taxes in the event of redemptions, ability to have the
individual shares in the ADR issued to you without taxable
a weighted depositary receipt of 20 large biotech
companies (amgen being a very large fraction of the index).
There's never a discount to NAV. If H&Q changed to an
open ended fund structure, the discount would
evaporate and fund holders would coup an immediate profit.
The quarterly distribution has done nothing for the
nav. I e mailed them and asked why it should, and got
no comprehensible reply.
Closed-end, update: Back in February, David
Tepper Capital Management in San Francisco,
this column's longtime closed-end fund
recommended the H&Q Healthcare Investors
H&Q Life Sciences Investors
Since then, H&Q Healthcare is up
around 12.8% and
H&Q Life Sciences has gained 18.8%.
have positions in Gilead Sciences
which has helped," Tepper says.
Yet they both
still trade at steep discounts to their net
values, and "we have seen a fair amount of merger
acquisition activity in the biotech/medical tech area
probably will continue," which is why he remains
bullish on both.
Excerpt from TheStreet.com
What a piece of crap this fund is. All the
biotech stocks are going up big and this piece of junk is
still under 15, my purchase price a couple years ago.
What a waste of time and money. I think I am going to
get out soon. I'll pick my own biotechs and do much
better than these idiot managers.
Minor correction to my previous
Freebie yield (exclusive of the regular Nov/Dec cap gains
should be about 10% in the case of HQH (and perhaps
somewhat less for HQL). 8% per year = 2% per quarter * 4
quarters on a NAV of 20 that you get for your $16
So, 10% = 8% * 20/16.
Again, three reasons to
hold HQL/HQH: 1) great portfolio,
2) discount from
NAV that will be narrowed by the dividend,
venture investments in start-ups probably carried at
conservative valuations, 4) intensifying M and A activity in