Nate Pile, editor of Nate’s Notes, returns to an old favorite for his top conservative investment idea for 2015, a closed-end biotechnology fund.
As has been the case for the past several years now, my top income pick for the coming year is Tekla Life Sciences Investors (HQL), formerly known as The Hambrecht & Quist Life Sciences Fund.
As its name suggests, this closed-end fund invests in a variety of publicly traded and privately-held companies doing work in the life sciences sector.
Though investors can probably get more bang for their buck owning individual biotech stocks, we believe HQL represents a great alternative for investors who want to be involved with the sector but would rather avoid some of the volatility that comes with investing in the space.
The fund has a policy of paying out 2% of its net assets quarterly and we encourage folks to take this payout in the form of additional stock (the default) rather than ask for cash. Tekla Life Sciences is a strong buy under $25 and a buy under $28.
