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Taylor Swift Invests in Discounted Closed End Funds. Should You?
– canadianbusiness.com
Last weekend, Boaz Weinstein, founder of New York-based investment advisor firm Saba Capital Management, attended one of the Philadelphia dates of Swift’s record-breaking Eras Tour with his daughters. It prompted him to tweet: “Did you know that @taylorswift13 invests in discounted closed end funds? You think I’m kidding, but her father Scott told me so!” These sorts of funds are niche and cost a lot to manage, but can also result in high yields. “For many reasons,” Weinstein adds, “it’s hard not to be a Swifty.” (We’ll forgive him for spelling Swiftie wrong….)
Clearly, Weinstein approves. So, what exactly are these funds, and should we all be investing in them? (Can we even??)
Closed-end funds, or CEFs, are like mutual funds—a portfolio of securities that’s typically managed by a firm…