Folks,

I’ve been reading through some of these posts with great amusement.

Let’s clear up a few issues

1. USA trades at ~ 18% discount to par value as of 8/18. These are liquid level 1 assets. Translation: You buy a dollar in liquid assets for 82 cents.

2. USA took big losses last year and the net-loss carry-forward is significant ($100+ million and counting). Translation: The fund can offset capital gains through 2016.

3. The managed distribution policy works to your benefit. Though only a small portion of the 6% annual managed distribution is earned dividend income, the remaining distribution is a return of capital AT PAR VALUE. So…you pay paid 82 cents on the dollar and they liquidate assets at par ($1.00). This 18 cent difference is a return of capital and not taxable. Translation: You get free, tax free money.

Perhaps some of you are correct with the assertion about management. However, where else can an unsophisticated investor buy a pool of level 1 assets at this kind of discount? Where else can you play an eventual market rebound with tax-free capital gains? How many other asset sell at an 18% discount and return capital to shareholders at par value every quarter?

I understand many long-time shareholders got burned and emotions remain fragile. I feel for you guys. However, for new money, where else will you find a better risk/reward proposition?


At today’s valuation, the average Joe has a better than average chance of beating The Street at its own game.

Hope this helps clear the air.