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Well in the UK I have as a amateur investor taken advantage of arbitrage in the last few years. One on a big trust Witan that had gone out to a much bigger dis
by walshemj 8y ago
Well in the UK I have as a amateur investor taken advantage of arbitrage in the last few years. One on a big trust Witan that had gone out to a much bigger discount than normal due to a stock overhang caused by a forced sale. The other was Electra private equity which was on a huge discount.
- subjectHarold 8y agoIt's only an arb if your net exposure is zero. If you want an arb, look at Hansa. You can buy their trust and sell an underlying porfolio which, if you do it right, should come out to very close to zero exposure. But most CEFs aren't selling at a discount because of liquidity, they are just shit (if the manager is decent, they should buy back shares to close the discount).