DWS Dreman Value, Inc.me Edge Fund, Inc. (AMEX:DHG)
A Closed-End fund
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BOSTON (MarketWatch) -- Imagine if a company held a shareholder vote and then ignored the results because it didn't like the outcome.
Stop imagining. A closed-end mutual fund run by DWS Investments recently ran a slate of board members for re-election, and when the vote didn't go management's way, stiffed the shareholders and kept the incumbent, entrenched board.
There should be outrage when the will of shareholders is ignored, but few investors actually pay attention to the election of trustees for the stocks and funds they own.
But the rule that allowed that to happen is precisely why the DWS Dreman Value IncomeEdge fund (DHG 12.43, -0.04, -0.32%) is the Stupid Investment of the Week.
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Dividend (11% +) play. I'm thinking dividend/value plays will be the place to be.
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Very good dividen
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Good yield....substantial discount to NAV and David Dreman as manager...
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Safe place in turbulent market
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"David Dreman is the founder and Chairman of Dreman Value Management, LLC and also serves as the firm�s Chief Investment Officer. His Large Cap Value Fund has returned average 17% annually, and Small Cap Value Fund average 16.5% annually since inception in 1991. A regular columnist for Forbes for 22 years Mr. Dreman's recent best selling book, Contrarian Investment Strategies: The Next Generation? was published in the spring of 1998.
The Contrarian, and the value guru. His investment philosophy is based on low P/E approach to stock selection. Invest in undervalued companies that exhibit strong fundamentals, above-market dividend yields and historic earnings growth, which our analysis indicates will persist. Own strong, fundamentally sound companies and to avoid speculative stocks or potential bankruptcies"
Well, I know the work of this guy because I have read bis book (who was revised this year, go and buy it), and several of his articles. I tell you, David Dreman isn't the kind of investor as Warren Buffet, he isnt naturally a gifted stock picker, but his rational approach and his methods make him a true genious. I find David Dreman's work and investing theories much more interest than the ones from Warren Buffet and of great use for the small individual investor such as myself. Warren Buffet's advice is great, but is not objective enough because facing the truth I'm not as good as him.
Hope not to repeat myself too much, but David Dreman is a true genious and uses his geniality for stock picking as he could use it for whatever else he would want, a capitalistic Leonardo da Vinci of modern times. Warren Buffet is a natural born stock picker. Ok, geneticists, please send me some hate-mail for saying this one, I know, I know, humans evolved for reproducing, hunting and killing, but Warren Buffet paid attention to stocks since he was 9 years old and eventually wired his brain to work in the stock market way :-) Yes, and, that is actually correct, humans also didn't evolve o play guitars or write poetry, but some people seem naturally born for that, right ?
Ok...I've written too much again. I just love writting a bit about a bit everything and a bit about a bit of nothing.
Recs
DWS Dreman Value IncomeEdge Fund is a closed-end management investment fund with investment objective to achieve a high level of total return. The fund invests in dividend paying stocks and other instruments like high yield bonds, preferred stocks and real estate investment trusts. As on December 31 2006, 61% of the portfolio composition was concentrated in common stocks.
The portfolio is primarily focused on the financial services as 43% of their funds are invested in this sector. Financial services have a positive outlook in the near future driven by investment banking and the brokerage industry. Consolidations are happening at a very fast pace and various players in the investment banking space like Morgan Stanley and Goldman Sachs have posted strong top line performance due to higher M & A fees.
One of the concerns for the fund is the prospect of real estate investment trusts (REITs), which constitutes 16% of the total sectoral composition. The outlook for REIT arouses skepticism, as the sharp slowdown in the U.S. housing market is likely to paralyze the demand for the leased space and affect the returns for the sector. To add fuel to the fire, rising crude oil prices is mounting the inflationary pressures, which could negatively impact the bond markets in the future.
However, prospects of energy companies look bright as oil prices are soaring backed by possibility of supply cuts due to tensions over Iran’s nuclear program. This denotes a good picture for the fund, as 29% of the funds are concentrated towards the energy sector. Moreover, crude oil prices are expected to surge further on account of its rising demand in summer and augmentation of the U.S. crude stockpiles. Health care and Telecom together form 7% of the sectoral mix. Increasing number of aging U.S. population resulting from the transition of baby boomers to senior citizens has helped the health care industry to gain traction. Outlook for telecom sector is also good considering the rapid growth of wireless industry on account of improved network coverage and lower prices. Thus as benefits outweigh the weaknesses, it is expected that the fund would deliver good returns in the near future.
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