Yes, they did drop like a rock and the managers probably don't care as they get paid no matter what happens. Could have cleaned up knowing all the bad news was coming plus a 30% dividend chop.
Maybe fear of a distribution cut since this fund usually returns capital and earns little. Also Morningstar has nothing kind to say about this fund, ranking it 2 stars.
This isn't the only convertible CEF to take a real pounding this year. Lots of people want out and there's not many buyers. Also there is the fear of a distribution cut.
Thank you for letting me know about the upcoming dividend cut. With a market cap of $77 million I often wonder if Lazard won't just merge this CEF into another. Also I noticed the insiders don't believe in LOR since they never buy any shares. Morningstar rated LOR 4 stars in Sept, 2014 eleven months later they gave it their 1 star rating.
Besides buying NCV I bought NFJ at the same time, a CEF owned by the same company, and it too has dropped 25% and yet it is filled with the stocks of giant global corporations While the Dow and S&P 500 are near all time highs this fund continues to drop. I don't understand why Allianz CEF's are performing so poorly.
I bought LOR in Sept, 2014 @ $15.75. Today it closed @ $10.87.Also LOR has cut its monthly distribution. Buying this CEF was a big mistake. It seems to do only one thing well and that is lose value.
I bought GAB in Sept, 2014 @ $7.50 today it is $6.15. I only wish GAB were a winner but the stock market doesn't think GAB is a winner.
I bought NCV+NCZ in Sept 2014 and watched them lose 25% in value and the Fed hasn't even raised interests rate yet. Does anyone on this board have an estimate of how long these two CEF's will be able to exist? Some CEF's last decades but the long term chart on NCV+ NCZ show them declining in value over the years.