Expert Manager Talks Closed-End Funds

We believe Emerging Markets Telecommunications(ETF Quote) is attractively priced and it has become one of our larger holdings, along with Mexico Equity Income(MXE Quote).

We continued to accumulate a small position in Latin Discovery(LDF Quote) despite its negative short-term indicators, because its discount is favorable relative to pre-tax-loss-selling levels and because its discount has narrowed less than Latin America Equity(LAQ Quote).

Q: You haven't mention activism. Is it quiet on the activist front?

A: Not at all. On consecutive days this May, Claymore / Raymond James(RYJ Quote) announced it would convert to an ETF and Castle Convertible(CVF Quote) directors voted to open-end the fund.

The first had been targeted by activists. The second, however, was a surprise. The windfall profits that resulted from these actions are icing on the cake. The discounts remaining in these funds are, of course, much lower than they were, but they still afford the opportunity for enhanced returns to investors who buy them now and hold them until the reorganization is completed.