Scared of Stocks and Bonds?—Invest Here Instead: CIO

For those who fear stocks and bonds, take a look at closed-end funds*, said Maury Fertig, chief investment officer of Relative Value Partners.

Closed-end funds are mutual funds that trade in public markets with a fixed quantity of shares.

“There are about 650 funds trading in the U.S.,” Fertig told CNBC.

“There are several opportunities out there that are still depressed where you can make money on the dividends, possible money on the asset appreciation, but you also have a significant edge if the discount compresses.” (Scroll down to see his picks.)

“There’s a few funds that have lagged significantly, where there has been a dividend cut or some change in the dividend policy which has created the opportunities,” he said.

Fertig’s Recommendations:

Legg Mason Capital & Income Fund

BlackRock Credit Allocation Fund IV

Royce Value Trust

Scorecard—What He Said:

  • Fertig's Previous Appearance on CNBC (Jun. 17, 2010)

More Investment Ideas:

CNBC Data Pages:

CNBC Slideshows:



No immediate information was available for Fertig or his firm.