Clough Global Opportunities Fund (GLO) Stock

The Clough Global Opportunities Fund offers a high yield of 10.93%, appealing to income-seeking investors despite potential risks of distribution cuts. The fund's portfolio is heavily weighted towards mega-cap tech stocks, which may not enhance diversification and could limit potential returns. The fund's leverage is relatively high at 29.98%, which boosts returns but also increases risk, making it less suitable for risk-averse investors.

Clough Global Opportunities Fund is a hybrid closed-end fund with nearly no constraints in trying to achieve its investment objectives. GLO has outperformed the S&P 500 Index in the short term and remains a speculative hold as the fund continues to trade at a deep discount. The fund's high distribution yield is maintained through a managed distribution policy, with a heavy reliance on capital gains to fund these payouts.

Clough Global Opportunities Fund provides a significant income opportunity with a distribution yield of 11.63%, surpassing similar funds. Although it has lagged behind the S&P 500 and MSCI World Index in the last year, it has achieved a total return of 14.33% since the previous article. Despite its diverse portfolio, GLO's performance compared to its peers has been affected by its high expenses and leverage.

Clough Global Opportunities Fund is a closed-end fund trading at a deep discount; the fund invests in equity and fixed-income securities globally. The fund has a lackluster historical performance but offers a managed distribution policy that can attract yield investors. GLO has reduced its leverage substantially, and while it appears it was done at the wrong time, the more mild leverage I would view as a positive.

The Clough Global Opportunities Fund relies on its star manager, Charles Clough, to make differentiated macro calls. Unfortunately, the fund has massively underperformed a passive ETF for 3 years in a row, returning -11.4% p.a. vs. 8.2%. Combined with an exorbitant 6.25% annualized expense ratio, I believe investors should sell the GLO and look elsewhere for global exposure.