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Summary This week there have been a few SEC Filings with Pimco Fund Sales. Thus far only three funds have been partially sold. The selling may provide a good buying opportunity at some point. I have previously written some articles describing Bill Gross purchases or sales of Pimco closed-end funds. While he worked at Pimco, Mr. Gross often supported Pimco’s CEFs with his personal money. There was also “copycat” buyers who often followed Mr. Gross into some of these issues. Bill Gross resigned from Pimco on September 26. Since then, closed-end fund investors have been wondering whether or not Mr. Gross would sell some or all of his Pimco CEF holdings. This week we finally started to see some SEC filings with sales of Pimco CEFs from Mr. Gross. These are the first trades since Mr. Gross resigned from Pimco in September. There is normally a two day filing delay, so the filings for February 5 show the trades done on February 3. It remains to be seen whether the selling is completed, but in the past, buying or selling often continued for a week or longer. Shares Tkr Sell Date Average Price $ Realized Discount/Premium (Feb. 5) 50,000 PDI 3-Feb 30.2641 $1,513,205 -0.8% 32,733 PDI 2-Feb 30.304 $991,941 6,630 PTY 2-Feb 16.7823 $111,267 +19.2% 22,649 PCN 3-Feb 15.3397 $347,429 +4.2% 29,200 PCN 2-Feb 15.3856 $449,260 Bill Gross owns several Pimco closed-end funds that hold tax free municipal bonds. PCQ and PZC hold tax free bonds from the state of California. Even though his new employer, Janus Capital Group, has headquarters based in Colorado, Mr. Gross has arranged to work out of an office in California. For this reason, I expect he will likely hold onto his California muni bond funds. Some of his other national muni bond fund positions may be sold depending on their cost basis to be replaced with similar funds from Janus. One fund that Mr. Gross has not sold yet that still looks fairly attractive is PCI. I’ve included some summary data for PCI below. But keep in mind that Mr. Gross currently owns about 2.4 million shares of PCI, so if he ever did decide to sell PCI, there could be quite an overhang. Pimco Dynamic Credit Income (NYSE: PCI ) -pays monthly Total Assets= 5,717 MM Total Common Assets= 3,096 MM Annual Distribution (Market) Rate= 9.12% Latest Monthly Distribution= 0.1563 (annual= $1.8756) Average Monthly Earnings per Share= $0.1804 (as of 06/30/2014) Fund Baseline Expense ratio= 1.30% Discount to NAV= -8.9% Average Six Month Discount= -8.8%% Effective Leverage: 46% Average Daily Volume: 712,000 Average $ Volume: 14.6MM Manager: Dan Ivascyn + team Disclosure: The author is long PCI. (More…) The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article. Are you Bullish or Bearish on ? Bullish Bearish Neutral Results for ( ) Thanks for sharing your thoughts. Submit & View Results Skip to results » Share this article with a colleague Scalper1 News
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