GAM adding alpha
In spite of the heavy load the expensive preferred @ 5.95% is putting on GAM the cef is showing some foot. The nav for the fund has increased faster than the SPY for the last 8 weeks and that has to be closing in on some sort of Guiness record. The practice of buying back shares is not reducing the discount but its definitely juicing the portfolio.
I think that Phil Goldstein needs to be recognized as prompting this action by GAM mgmt. The tender practice as advocated by Goldstein seems to be a mistake but his driving mgmt to retire shares at a deep discount is clearly a winning strategy. The deeper discount as a result of the share retirements is opening the cef to an even more powerful effect. GAM could out leg the SPY for a # more weeks if they continue.