In the short-term, the Asian CEFs have a lot going for them. Not only are they immune from tax-loss selling, but their large capital gain distributions should attract "dividend capture" interest. We mentioned Korea Fund ( KF) last time we spoke. That fund's distribution, announced two weeks ago, turned out to be even larger than predicted, and their discount has narrowed 5% since the announcement.

Any activists making trouble that you're taking advantage of?

We've benefited from activist pressure on a few funds this year and we will soon be tendering our shares of MFS Government ( MGF).

We continue to hold our position in Bancroft Convertible ( BCV), even though the discount has narrowed considerably. Bancroft management seems willing to fight the activists, but that can all change suddenly. We were surprised at the proposed open-ending of Alliance All Market ( AMO). We don't know where the pressure came to do this for a fund that has often traded at a premium. But that's what's wonderful about CEF's: Some die, others are born, and the profit potential remains for active traders and smart investors.
Before joining TheStreet.com, Gregg Greenberg was a writer and segment producer for CNBC's Closing Bell. He previously worked at FleetBoston and Lehman Brothers in their Private Client Services divisions, covering high net-worth individuals and midsize hedge funds. Greenberg attended New York University's School of Business and Economic Reporting. He also has an M.B.A. from Cornell University's Johnson School of Business, and a B.A. in history from Amherst College.

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