I opened a new position today: long Helios Total Return Fund (HTR).
This is somewhat risky fund: more than 50% of it is invested in various mortgage backed securities. On the other hand, it pays more than 11% dividend, with monthly payments.
Last several days, HTR price was going down, when Net assets value (NAV) of the fund was going up a little bit. Currently fund is valued at about 9% discount.
My bet: mortgage backed securities are currently undervalued, and HTR is undervalued against underlying assets. High dividend doesn't hurt either.