That is a different resource capital and not RSO. Yahoo news makes that error about twice a month or so. Resource Capital IV is not RSO.
I recommend you go to the UBS Etracs website and look at the distribution and share price history. That is likely to provide you with better information than asking a general subjective question to a message board.
So you sold on March 24 when the NAV was $9.99. You gained $0.20 between the day of the split on March 9 when the NAV was $9.79 and when you sold. Nice gain!
So the troll is playing the the I am the "real Fred Kane" game. His full identity is fredkane3947 at rocketmail. Click on his posting history and you will see that the troll who loves to stalk me has a rather short history. Put him on ignore and you do not have to bother figuring out of it is the troll or the fredkane3947 at yahoo. Having a stalker trying to impersonate me is amusing. The stalker/troll uses multiple IDs. Too bad he also engages in really malicious stuff as well. Kind of sad.
The GABUX NAV is $9.89 today. Since the reverse split that is a total return gain of $0.18 a share with $0.07 in distributions and $0.11 in the NAV.
Mario doesn't get the management fee. The corporation gets it as part of its management fee. Mario is paid on a performance basis by decision of the board of directors. He isn't giving himself a raise at all. So what you say is a fact is not a fact and I can argue it. Why not give this misleading and repeated claim a rest? If you own GABUX then sell it.
The NAV was $9.79 on the day of the split March 9. It was not more than $5 as you claim. On Friday, March 27 the NAV was $9.78 and you also received a $0.07 distribution. So your total return is a gain of $.06. So GABUX is down a penny in its NAV in a month, you pocketed $.07 a share and you are whining?
What you wrote makes no sense. The change in NAV on the ex-div date is a product of the loss of $0.07 from the NAV and the gain or loss for the NAV that same day based on the performance of the assets and any other changes in assets. I never claimed that the NAV would increase when the first dividend is paid after the reverse split. That may or may not happen. It all depends on the performance of the portfolio that particular day.
That you don't seem to understand that may be an indicator that you don't understand how open end mutual funds work. In addition you call GABUX a stock and it isn't a stock.
I don't know. It isn't in the Statement of Additional Information. So I really don't know. I will keep my eyes open though and see if I run across it.
You are figuring this wrong. First, the management fee is 1% - not 1.38%. The 1.38% is the total expenses for the class AAA shares which is GABUX.
But more importantly, what you aren't understanding is that the classes are irrelevant to any of this. The fund has $2.4 billion in several share classes and the management fee is 1% of that $2.4 billion regardless of the class of shares. You really don't have the information to conclude what you do. You don't, for example, know how many investors take distributions in cash and how many reinvest. Nor do you know if fund assets are going up or down because you are limited to financial data as of December 31, 2014.
The adviser fee for 2013 was $28,461,325 for the year. The fee is paid annually. It was not paid to Mario Gabelli. You and others keep talking about "he" as if Gabelli is paid this money. He isn't. The adviser corporation is paid that. Mario is paid based on fund performance and not out of that 1% management fee.
You may think $2 million or so a year is a ton of money. For a $2.8 billion mutual fund it is not a ton of money. It is trivial and it doesn't go to Mario Gabelli anyway.
Thanks. I am always around, but rarely post because when I do the troll is quick to follow up with deliberately malicious and misleading posts.
No big deal. It is amusing that a troll creates an ID that appears on screen to be identical to mine and follows me around like a puppy dog seeking attention. Now and then I take him off ignore to see how he is misleading investors and sometimes remind them that it is a troll. It's kind of sad that someone engages in this kind of anti-social behavior. But, nothing can be done about it.
No one has ever said that investors did not lose half of their previous distribution. You seem to be saying that your investment is less "valuable" for you because you counted on the distribution. That is understandable. But, the fact is that the distribution cut and the reverse split did not change the total return of the fund. Cutting the distribution in half - which in essence is what was done - means that half of the distribution will not be paid and that half will be retained to increase the NAV.
Your distribution income has been cut in half. But that does not mean that you have lost value in the investment. Sorry. That does not mean that I am brain dead. It is just a fact.
It will be interesting to see what happens today, won't it? We all knew the cut was coming. Some people will not. Will they react to it? You are right. It could be a good entry point.
Who is bickering about how much cash GABUX holds? You are. You said they were out of cash. I explained based on the statement of assets that they are far from out of cash. You continue to whine about it. Why not do yourself a favor and move along? You lost money in GABUX apparently, did not know you were getting ROC distributions, refuse to accept responsibility for your lack of due diligence and have now sold. Nothing worse than a sore loser.
You don't "redo the equations" with regard to past performance because a fund does a reverse split (which has no change on the value of your investment) nor do you "redo" the distributions. They are historical fact.
Because you can imagine scenarios where someone has an unrealized loss of 50%, that isn't reality for individual investors whose gains or losses all depend on when you buy, when you sell, and the distributions received over your holding period and tax impact.
Once again you demonstrate quite clearly that you do not understand the concept of total return or how a reverse split does not change the value of your investment when the split takes place. It simply halves the number of shares and doubles the NAV. I don't think that algebra is too difficult for you, is it?
But you keep on whining here. It provides me with an opportunity to point out your fallacious thinking and that may help some investors increase their knowledge of investing in open end mutual funds.
Again, I wish you the best in your investments. I am happy for you that you have left GABUX. It clearly was not a fund that fit your needs or that you understood.