Wednesday, November 14, 2012
More fiscal cliff plays
I've been making nice plays shorting high dividend funds trading at large premiums to NAV such as PGP, PHK, CFP, any other high-dividend investment firms, and mortgage REITs such as IVR. I remain short all these at the time I'm writing this, but that may or may not change soon. The next sector to get smacked in anticipation of the fiscal cliff could very well be buyout firms, whose 15% carried interest advantage is at risk. They haven't really budged yet. I will start looking to short CG, KKR, BLK, FIG etc in coming days.