Energy Education Series
Top Closed-End Funds Sniff Out Energy Bets
Sam Patel
09/15/08 - 11:50 AM EDT
Some of the leading closed-end funds returned as much as 13% in August, with four of the top 10 exposed to the energy sector in one form or another. All this with a pullback in the price of oil.
The key seems to be non-diversification -- that is, focus on a few quality companies. For the top three funds, 50% to 60% of total assets are invested in their top 10 holdings.
The funds also share many common stock holdings.
The top holdings common to all three funds include Kinder Morgan Management (KMR Quote), Enterprise Products Partners LP(EPD Quote), Plains All American Pipeline LP(PAA Quote) and Energy Transfer Partners(ETP Quote).
The top funds follow below.
| TITLE SUB |
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| Fund | TICKER | Category | Premium/Discount | 1 Month Return (%) |
| Tortoise Energy Capital | TYY | Sector - Energy/Natural Res | 7.66 | 13.68 |
| First Trust Energy Income&Growth | FEN | Sector - Energy/Natural Res | 3.80 | 12.38 |
| Tortoise Energy Infrastr Corp | TYG | Sector - Energy/Natural Res | 10.78 | 10.47 |
| Tortoise North American Energy | TYN | Sector - Energy/Natural Res | -14.65 | 9.46 |
| Eagle Capital Growth Fund | GRF | Growth - Domestic | -8.51 | 9.23 |
| MLP & Strategic Equity Fund Inc. | MTP | Sector - Energy/Natural Res | -2.47 | 8.83 |
| PIMCO Strategic Glob Gov Fund | RCS | General Mortgage | 16.41 | 8.54 |
| Western Asset Emerg Mkts Fltg | EFL | Emerging Market Income | 29.25 | 8.52 |
| J Hancock Preferred Income III | HPS | Equity Income | -1.49 | 7.40 |
| Eaton Vance Insured MA Muni Bond | MAB | Municipal Single State | 5.13 | 7.40 |
| Source: INSERT SOURCE | ||||