Guggenheim fund shares hit 17-year low after short-seller report
Shares of the Guggenheim Strategic Opportunities Fund (NYSE:GOF) plummeted to their lowest level in over 17 years on Friday, following a short-seller's allegations about the fund's operations. The fund's stock closed at $9.07 on Friday, representing a 3.7% decline and the weakest point since March 2009. Earlier that day, the decline intensified as trading volume surged, with shares falling over 6% on Thursday.
The Bear Cave, a short-selling focused newsletter, claimed on Thursday that the fund had been paying distributions to shareholders by selling shares at a premium to its net asset value, raising concerns about the sustainability of these payments. The fund primarily invests in mortgage-backed securities and other fixed income assets.
As of Thursday's close, the fund traded at an 8.7% discount to its net asset value of $10.32. Guggenheim Partners and Hunterbrook declined to comment on the matter.
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