Closed-End Funds Strategy 2023

Plus, Crown Castle's activist push.

Today is Monday, November 27, 2023.

The Early Bird Index today is 60.91.

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Closed-End Funds Strategy 2023

Closed-end funds are another investing option for maximizing returns in 2023, said Steve Selengut, a retirement income coach, in a new episode of the Early Bird podcast.

Definition: Closed-end funds are similar to mutual funds in some ways. A mutual fund is a collection of securities such as stocks and bonds. Selengut said the difference is the structure of a closed-end fund, which is built like a trust vehicle.

Details: A closed-end fund is required to return to shareholders 95% of the income it generates, according to Selengut.

Yes, But: Selengut said that closed-end funds are also interest-rate-sensitive securities, which means that they struggle as interest rates rise.

Current Outlook: Selengut noted that closed-end funds are not up this year when compared to the broader market, but closed-end funds are still paying out the required income.

Final Thoughts: What are Selengut’s top picks for closed-end funds to watch in 2023? Find out by listening to a new episode of the Early Bird podcast.

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Notable Earnings Today: Cerence (Nasdaq: CRNC), Zscaler (Nasdaq: ZS), Seadrill (NYSE: SDRL).

Notable IPOs Today: Spark I Acquisition Corp. Class A Ordinary Share (Nasdaq: SPKL), Roundhill Video Games ETF (Nasdaq: NERD).

Notable Equity Crowdfunding Campaigns Ending Today: Hank's Cinnamon Buns (Honeycomb), Creole Orleans (Honeycomb), Tres Jardines (Honeycomb), WhiteFlag (StartEngine), Sweets by MJB (Honeycomb), Brewability (Honeycomb), Mike's Pizza (Honeycomb), Primary Plant Based (Honeycomb), Billie's Grocery (Honeycomb), Manos Sagrados (Honeycomb), Harold's Haunt (Honeycomb).

Notable Economic Events Today: Building Permits (8:00 a.m. ET), New Home Sales (10:00 a.m. ET).

Crown Castle's Activist Push

An activist investor is reportedly pushing for big changes at Crown Castle (NYSE: CCI).

Details: A Wall Street Journal report on Sunday said that Elliott Investment Management added to its stake in the telecommunications company, owning more than $2 billion in shares. Crown Castle is worth about $45 billion.

Definition: An activist investor is a fund that buys a large stake in a public company in order to reshape how that company is run.

Background: It’s been a rough year for Crown Castle. The company has slashed jobs and reported disappointing financial earnings. Crown Castle is down 25% in 2023.

Final Thoughts: The changes that Elliott Investment Management wants to make could benefit the company and be good for investors. 

BlackRock Backs Offshore Drilling Company

The offshore drilling operator Noble Corporation (NYSE: NE) disclosed on Sunday that BlackRock (NYSE: BLK) bought over 5% of the company.

Final Thoughts: BlackRock is up about 2.5% so far in 2023. Meanwhile, Noble Corporation is up 24% this year.

Trends to Watch

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