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ColoradoWealthManagementFund's avatar
ColoradoWealthManagementFund
Dec 18, 2023
∙ Paid
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We closed out all of our positions in one series of preferred shares today, earning an excellent return for a relatively quick holding period.

  • Average total returns: 16% to 22.8%. On average, nearly 19%.

  • Average holding period: less than 90 days.

  • Preferred share. Lower volatility and risk than the common shares.

  • Multiple purchases mean subscribers have several opportunities to follow us into the trade.

That’s a slam dunk.

A basketball player captured at the apex of a soaring jump, moments away from executing a windmill dunk. The scene is set in a very dark stadium, with the player brilliantly lit by overhead lights. The basketball, while still on fire, has subtler flames, about half as intense as before, providing a dramatic yet less overwhelming effect. The player's jersey, marked with "Colorado" and the number 19, reflects the toned-down firelight. The crowd is deeply shadowed, almost invisible, ensuring the player and the moderately fiery basketball are the central focus of the image.

Shares rallied most of the way out of our bullish range. Looking at the discount to targets, shares were trading at about 98.25% of our target price.

It’s technically a discount (of 1.75%) to our targets, but out of the other 44 preferred shares we cover, 30 of them carried larger discounts. That’s just over 2/3rds. When we’re looking at ways to reposition the portfolio, we’ve got to consider taking substantial gains on a position that moved to trade at a smaller discount to targets than 2/3rds of the shares we cover for that sector.

In general, it’s been an excellent time for investors throughout the market. While we earned a massive return on this position, most shares are up significantly. There were very few preferred shares near our price targets a month ago.

Precise details are available for paid members below.

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