PT - JOURNAL ARTICLE AU - Nusret Cakici AU - Anthony Tessitore AU - Nilufer Usmen TI - Closed-End Equity Funds AID - 10.3905/joi.2000.319443 DP - 2000 Nov 30 TA - The Journal of Investing PG - 83--92 VI - 9 IP - 4 4099 - https://pm-research.com/content/9/4/83.short 4100 - https://pm-research.com/content/9/4/83.full AB - Can discounts and premiums on closed-end equity funds be used to earn positive excess returns over a benchmark index? Research in the U.S. market has found that investors could have earned higher returns than a benchmark of U.S. stocks by purchasing shares of closed-end funds with discounts. This research examines an extensive sample of U.S. and U.K. listed closed-end funds September 4, 1998, through 1991, including transaction costs, an important element in evaluating portfolio performance that is absent from previous work. While long portfolios with deep discounts outperform a benchmark index, provided transaction costs are low, the surprise is that short portfolios with deep premiums outperform the benchmark and long portfolios, provided transaction costs are moderate to high.