ASA: Change Of Mandate For This CEF

Binary Tree Analytics 5.84K Followers Follow Summary ASA Gold & Precious Metals Limited is undergoing a major mandate shift from a gold/miners CEF to a credit-focused BDC managed by Saba. Saba, now holding ~32% of ASA, engineered the conversion to access management fees and pursue illiquid credit opportunities from stressed BDCs. ASA trades at a ~20% discount to NAV; a +10% arbitrage return is targeted if the conversion proceeds, though gold market risk remains until approval. We are a 'Buy' here, targeting discount narrowing, while monitoring shareholder approval and potential liquidity events. J Studios/DigitalVision via Getty Images Thesis ASA Gold & Precious Metals Limited ( ASA ) is a closed-end fund domiciled in Bermuda that focuses on precious metals and mining companies. The CEF has been in the market for over twenty years, making This article was written by Binary Tree Analytics 5.84K Followers Follow With a banking trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for 20 years after obtaining a Finance major at a top university. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ASA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.