CEF Activism: GAMCO vs. Saba, Profiting from Discounts and Dividends

Activist investors GAMCO and Saba are engaged in a power struggle over control of several CEFs, including Gabelli Utility Trust (GUT). GUT has a 10-year total return of 8.8% and a 10% dividend yield, but has lagged the State Street Utilities Select Sector SPDR ETF (XLU) in recent years. The outcome of this activist play could lead to shrinking discounts in CEFs and potentially boost GUT's performance.