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A truism made more valid today: Investing is not for the faint of heart. Most of the top-performing closed-end funds in August have crashed in the past few days.

Two that I would not touch have ties to energy. At 13.7%, no fund on the list did better than

Tortoise Energy Capital


. With oil dropping to the $90s, the prospects for its holdings of

Kinder Morgan



Plains All American

(PAA) - Get Free Report


Enbridge Energy



Sunoco Logistics


have gone south as well.

The other is from the emerging-market-income category. The

Western Asset Emerging Markets Floating Rate Fund

(EFL) - Get Free Report

added 8.5% in August before giving it all back this month.

Half the fund's investments are in the sovereign debt of oil-rich countries like Mexico, Brazil, Venezuela and Egypt. A total of 44.5% of its holdings are allocated to corporate debt including






and Mexico's Pemex.

While there are no safe bets in this market, the month-to-date beating taken by

Eagle Capital Growth Fund

(GRF) - Get Free Report

has left it trading at a discount to net asset value of almost 10%. That's not a bad way to purchase some of its top holdings,

Johnson & Johnson

(JNJ) - Get Free Report



(CL) - Get Free Report



(PEP) - Get Free Report

, and


(SYY) - Get Free Report

, all of which have held up well.

As with any trade, you can lose money. Remember to place stop-loss orders to help protect you from sudden moves against positions.

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Kevin Baker became the senior financial analyst for TSC Ratings upon the August 2006 acquisition of Weiss Ratings by, covering mutual funds. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.