From Thomas Herzfeld on his Oxford Preferred holdings:
What Helped Performance
Preferred Shares — After opining in the prior quarter
commentary about the covenants and expected outcomes
of our largest positions, Oxford Lane Capital cumulative
preferred shares, we got to see the process play out in the
market as the common equity (OXLC) breached its asset
coverage ratio of debt to equity. We added shares of the
preferred on the way down as our analysis showed plenty of
assets on the balance sheet and a steady stream of income that
could be diverted towards curing their asset coverage ratio
deficiency. On February 23, OXLC announced the curing of
its prior non-compliance, which caused both preferred shares
to rally sharply into quarter-end. Both closed the quarter
near par value of $25, contributing 69 basis points of positive
performance to the Fund.
I am not trashing the Oxford common and I have owned the preferred for over a year. Herzfeld always buys closed-end companies when everyone else hates them. He is the savviest CEF investor around and he owns 330,000 shares of Oxford preferred in his open-end fund Virtus. Simmer down Winnie.
Have you looked at the number of shares Herzfeld's open-ended mutual fund owns? He also manages private accounts that I am sure are filled to the brim with Oxford common and preferred. So who does Dave Winnie think was buying?