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
Enterprise Products Partners LP
Plains All American Pipeline LP
Energy Transfer Partners
The top funds follow below.
Sam Patel, CFA, is the manager of mutual fund research for the TheStreet.com Ratings.
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