About Michael A. Weiss, CFA Expertise I can provide high quality answers to questions about mutual funds domiciled in the United States. Overall, I have 15 years of investment experience. I am currently the Editor of <a href="http://www.mutualfundinvestor.net/">The Mutual Fund Investor</a>, a quarterly publication that provides recommendations and commentary on various no-load mutual funds. I am also currently the Chief Investment Officer of a state registered investment advisory firm that specializes in no-load mutual funds.
Experience Overall, I have 15 years of investment experience. I am currently the Editor of The Mutual Fund Investor, a quarterly publication that provides recommendations and commentary on various no-load mutual funds. To learn more about The Mutual Fund Investor, please visit <a href="http://www.mutualfundinvestor.net/">http://www.mutualfundinvestor.net/</a>. I am also currently the Chief Investment Officer of a state registered investment advisory firm that specializes in no-load mutual funds.My mutual fund experience began at a company called Lipper Analytical Services, where I researched and wrote about mutual funds. Lipper is one of the premier mutual fund research and ratings organizations. After Lipper, I worked as an investment analyst for Merrill Lynch’s multi-billion dollar Mutual Fund Advisor and Selects Programs. I also have experience working with individual stocks and bonds. I have managed investment portfolios for both Merrill Lynch Investment Managers as well as Evergreen Investments.<BR><BR><B>Organizations</B><BR>CFA Institute
CFA Society of Philadelphia
<BR><BR><B>Publications</B><BR>The Mutual Fund Investor
<BR><BR><B>Education/Credentials</B><BR>CFA charterholder
MBA in Finance and Investments from the Zicklin School of Business at Baruch College<BR>
Expert: Michael A. Weiss, CFA Date: 8/13/2007 Subject: Alpine Dynamic Dividend Fund
Question I have purchased and held Alpine Dynamic Dividend Fund (ADVDX)since July 2006. I am pleased with current yield. It appears that the managers try to keep the funds value between 12 and 13 dollars. I really have no other experience with high yield funds. My holdings comprise about 10% of my portfolio. Any thoughts on the fund would be appreciated. Thank you.
Tom
Answer Hi Tom,
Thank you for your question. I think that the jury is still out on Alpine Dynamic Dividend Fund. In general I like the concept of an equity income fund. Many funds call themselves growth & income or equity income funds but few can deliver substantially higher than normal income. I also like that this fund employs what are normally considered value-oriented strategies. I also think that Alpine is a good company with a very experienced Chief Investment Officer in Stephen Lieber. Mr. Lieber was the founder of the Evergreen Funds, which were later sold to First Union and then to Wachovia Bank.
Alpine Dynamic Dividend fund gets its income from a few sources: higher yielding stocks, turnaround situations and special dividends. Higher yielding stocks and turnaround situations are an attractive way to get income. I am not so sure that the special dividends add value to shareholders. The fund looks for companies that are about to distribute a large dividend. On the surface, this appears to be a return of capital, which you could achieve on your own by simply selling shares.
There are a couple of other points that I would like to make. I think that the tax benefits are overrated. Sure, you might get taxed at the favored tax rate of 15%, but unlike normal equity funds, most of your return here is taxed in the current year. To me, this fund is most appropriate for an IRA account.
Also, the fund has been in the right parts of the markets over the past few years. It has considerable exposure to international as well as small and mid cap stocks. It will be interesting to see if this fund does as well when these markets fall out of favor. I would also like to see how this fund performs in a bear market.
Also, you mentioned that this fund is a high yield fund and it is. However, traditional high yield funds invest primarily in bonds. This fund invests in stocks and has the risk associated with investing in equities.
