Post #5746 by Mrg5a on the US Policy board

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Does anyone follow CET? Closed end fun trading a 20% discount to NAV. A solid portfolio of quality stocks plus a 20%+ holding in Plymouth Rock Insurance.

From what i can find, they mark the privately held insurance holding at a large discount (due to illiquidity). From what I see, the company is valued at 16,000 (2023) while CET owns 28,424 shares valued at 258,658,400 = 9,100 (Dec, 2022) from the financial reporting of Plymouth, they are growing book quite well and are located in northeast USA (limited hurricanes or forest fire risk)

The fund has a ok expense ratio 0.5% and i am not sure there is a catalyst for the discount to narrow. However, it seems like a decent opportunity in this pricey market.

Thoughts?

https://www.plymouthrock.com/about/financial-infor...

https://www.centralsecurities.com/wp-content/uploa...

https://www.cefconnect.com/fund/CET

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The manager is Wilmot Kidd is quite old like Buffett I am unsure of the secession plan. This probably causes some uncertainty and widens the discount.

However, Kidd has been able to beat the SP500 by 1-2% quietly and under the wall street radar.

There is also some incredibly low cost basis to some of the positions and that would mean some tax hit and hence discount.

See page 11 below.

http://www.centralsecurities.com/wp-content/upload...

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Hi, 30 percent of my IRA is CET another 30 % ADX. The distributions cover my RMDs with no problem. Hopefully, Plymouth Rock is very conservatively marked. GL with it.

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