>I compared HQH to HQL, both being closed end funds managed by Hambecht and Quist, and they seem to have extremely similar behaviors and holdings with HQL trading at $13.38 currently while HQH is trading at $16.51. Neither have options so I guess the lower priced one (HQL) is a better bet as it requires less capital...<
This is a silly statement. You shouldn't worry about the cost/share.
Dew's argument is based on discount from NAV. I'm not sure where he's getting the 14%, but my data says that HQH is trading at an 11.99% discount to NAV and HQL is trading at a 10.92% discount to NAV as of 8/17. Thus, other factors being equal, HQH is the better deal.
Regarding Dew's statement that HQH's discount to NAV is at its highest level since 1998, not correct either. HQH was trading at a near 25% discount to NAV from 1999 to mid-2001 and a 11%+ discount between 6/30/94 and 1999. The last time HQH approached current discount levels was late 2003. Nevertheless it's still a sound argument.
