We Purchased Gabelli Go Anywhere Puttable Preferred

For a week we have had a good til cancelled buy order in for 100 shares of the Gabelli Go Anywhere Fund Cumulative Puttable Preferred shares  (AMEX:GGO-A) and it executed at $42/share today.  We will put these shares in the Medium Duration Income Portfolio.

We had written about this issue previously here.    At $42 per share the current yield is around 4.8%–the coupon is 5%.  The coupon remains at 5% for about another year at which point it floats at 200 basis point over the 10 year treasury (which would make it about 4.95% if it were floating now).

The issue is a bit funky–so to get the details you can read at the previous link or go the the security page here.

While this issue is unrated we consider it investment grade.

10 thoughts on “We Purchased Gabelli Go Anywhere Puttable Preferred”

  1. Hi Tim, question… I always thot the hypothetical portfolios you run were not actual portfolios? I guess what I am saying is do you first buy for your personal account ( which includes some of the medium duration issues) OR are you purchasing and using that reference cost for the hypo portfolios..

    so you don’t include the issue unless you have executed a trade and thus have a concrete price to use to include it in the hypo.. Bea

    1. Hi Bea–they are hypothetical–but very closely mirror what I personally do. Yes I use the personal price for the portfolio price—as with issues like this one you may not be able to buy it as it is so illiquid—I don’t want to plug in ‘buys’ to the hypothetical portfolios if I an really buy it.

      Issues that are liquid I don’t worry about using a ‘fake’ price (like fake news I guess) as they are truly buyable.

  2. so, if purchased at 42 and put in 3 years at 40 one would make about 11% or about 3.75%….is my math correct?

    1. Hi Martin–yes you are correct. It is ultra conservative-not investment grade rated, but to me is investment grade. Similar in quality to all the Gabelli CEF preferreds–but those are all perpetual and this one has the ability to get out at a price certain and that his worth a lot to some.

  3. Tim did you see my previous post? We both hit this illiquid on the same day by accident. How is that for coincidence? Basically you forced me up a nickle in price getting the $42 batch as they just wouldnt come down all day. Being impatient I raised a nickle a hour before close and right at bell closing they sold to me in separate accounts at same time though I didnt get the 500 shares I bid on.
    For perspective on patience and illiquidity, it traded 780 shares yesterday. The entire month of July saw only ~ 2100 shares exchange hands. And has a 90 day trading volume of 57 shares, despite a decent 84 million market cap. People usually buy to hold these Gaballi preferreds.

    1. Hi Leon–no I have not. I have never delved into the land of $1,000/share issues–maybe I should. I hold some $50/share and $100/share issues.

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