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Resource Capital Corp. Message Board

fredkane3947 9 posts  |  Last Activity: Aug 21, 2014 9:41 PM Member since: Sep 19, 2008
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  • fredkane3947 fredkane3947 Aug 21, 2014 9:41 PM Flag

    king replying to himself..... what a wacko!

  • fredkane3947 fredkane3947 Jul 3, 2014 1:41 PM Flag

    Where can you get 9% on a short term liquid investment for your cash? What does GABUX do if it has little or no cash and has to pay a distribution or wants to buy more GE stock and doesn't have the cash to do it? Do they sell some asset and buy GE? Maybe, maybe not.

    I just think the whining on this board about the expense fee and the cash holding is ridiculous. GABUX has half the percentage of assets in cash that it had four or five years ago. The fee is appropriate for an actively managed fund with $3B in assets. If anyone doesn't like it then why hold onto it? If I hate an investment, I sell it. My complaining isn't going to change it.

  • fredkane3947 fredkane3947 Jul 2, 2014 5:43 PM Flag

    You say "if return of capital grow".... Haven't you noticed that the GABUX distribution has been mostly ROC for over a decade now? Do you think this is a new thing?

    So I'll ask you once again, how much cash do you think the fund should have? At the end of 2013 the fund was 12.1% cash with about $373 million in T-bills. In 2013 the fund had $15M in liabilities, investment income was $84M and fund expenses of $45M are paid out of investment income (you knew that, didn't you?) for a net investment income of $38M. Then the fund pays out about $450M a year in distributions to shareholders or about $37.5M a month.

    So GABUX has a cash balance of $373M to the year and will pay out over $450M in 2014 in cash distributions. Cash is coming in and going out all the time. So what do you think the fund should do? Should it sell assets each month to pay the distribution? Obviously it doesn't and that is a bad bad idea that any savvy investor in an equity mutual fund would grasp quickly.

    The cash balance is about where it should be in low interest T-bills in order to meet ongoing cash demands and to have enough cash to assume new positions when appropriate without having to sell other assets to do it.

    Do you have any other thoughts about the cash balance?

  • fredkane3947 fredkane3947 Jun 12, 2014 8:34 PM Flag

    If you are interested in learning about actively managed open end mutual funds, you might want to listen up. Mario doesn't get the fund operating expense fee. The fund operating expense fee pays for the costs of active fund management. It is called the fund operating expense for a reason. The management fee is 1.0% That is not paid to Mario Gabelli. What do you think are more reasonable fund operating expenses for an actively managed fund. You only compare an actively managed fund to the operating expenses of passive index funds. That is an apples and oranges kind of comparison They are not the same at all.

  • Reply to

    Share price slow melt?

    by gebenhoeh Jun 11, 2014 4:06 PM
    fredkane3947 fredkane3947 Jun 11, 2014 6:25 PM Flag

    If the share price fell below $5 and the market was not showing an equal decline then I might consider selling my GABUX shares if I thought there was a better investment for my needs. But then that's always the case for me. I am always reviewing my portfolio and deciding how to allocate my money. I could sell all my GABUX and buy more CEFL with it or something else. But, I want to maintain a diverse portfolio and GABUX helps me do that.

  • fredkane3947 fredkane3947 Jun 11, 2014 12:36 PM Flag

    You make so many assumptions that your posts are actually pretty silly. Of course my cost basis is being lowered. I haven't sold any shares and don't plan on it. So that is really irrelevant. Even if for some reason I did sell shares, I'd pay the taxes, if any, caused by my realized gain. Since GABUX is only a part of my total portfolio, I am really not at all concerned with the tax issue you raise.

    But there are ways to maneuver around this issue even then. If you would read what others have posted about selling shares occasionally then you'd understand that. But, you don't seem to have any interest in learning anything. Your apparent interest is in criticizing Gabelli and those who invest in GABUX. I wonder why? What's it to you? If you are an investor in GABUX and are unhappy then sell your shares and leave. If you aren't an investor then why do you care what other investors do?

    As for your absurd claim that since the GABUX expense is 1.37% and the real dividends are 3% then you are giving up half of what you call your real yield to expenses, that is so bind to reality. Dividend income is only a part of GABUX's net earnings from operations. An open end mutual fund has other gains in net assets. Of course an indexed fund like XLU doesn't since it is a passively managed fund. But then you don't seem to know the difference between actively and passively managed funds.

    You really aren't making your case at all. My total return on my GABUX investment is quite good and I am very happy with it. In fact I just added more shares last week. GABUX isn't a good fund for every investor, but may meet the needs of some investors. Why you don't understand that and continue your silly attack causes me to question your seriousness and why you are trolling this board.

  • fredkane3947 fredkane3947 Jun 9, 2014 5:57 PM Flag

    Another nonthinking post. Index funds are passively managed and always have low expenses. Actively managed funds have higher expenses. What you are ignoring because it is convenient and shoots down your thesis is that GABUX is a tax advantaged fund. You don't get that for some reason. You also don't seem to get that GABUX isn't a utilities fund. How about you do a little serious research and then come back and tell us what you've learned.

  • Reply to

    More bad news about GABUX

    by carol88888 Jun 8, 2014 10:54 AM
    fredkane3947 fredkane3947 Jun 9, 2014 1:14 PM Flag

    I suggest you use something other than Wikipedia for your research into tax advantaged open end mutual funds that utilize return of capital as a vehicle. If your thesis is accurate then how is it that GABUX has a total average annual return of: 1 year 17.48%, 3 years 11.09%, 5 years 14.23% and 10 years 9.47%?

    That pretty much sinks your Titanic thoughts, doesn't it?

    Thanks for playing!

  • Reply to

    The World According to Fred Kane

    by jrfillllion May 29, 2014 6:25 PM
    fredkane3947 fredkane3947 Jun 2, 2014 8:55 PM Flag

    No, I am still holding RSO as one of my core positions. I ignore the Jrfilllion troll and all of his avatars most of the time. RSO probably won't be at $9 anytime soon, but that's not a reason for me to sell. I love the dividend yield and have added to my position at times to bring down my cost average. I am very happy with my total return in RSO. I've used some of my RSO dividends to buy CEFL and am pleased with its performance as well.

RSO
5.41-0.02(-0.37%)Aug 22 4:05 PMEDT

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