Whitney sells KNX 24.72: And with the fund's discount narrower than its recent history, now isn't the time to jump aboard.

Once again, however, you can see that the focused approach comes with risks. Knight is down around 18% so far this year and Heartland, the tenth largest holding at the end of the first quarter, is down about 20%-no wonder it fell out of the top 10 by the end of the second quarter. With two of the three struggling, it's no surprise that SOR's NAV is only slightly ahead of where it started the year. So you can see the impact O'Reilly, Signet, and CarMax will have on performance. For reference, the top 10 holdings account for around 60% of the fund.


Veronica:
For example O'Reilly Automotive (NASDAQ: ORLY ), a winner for the fund so far this year, makes up nearly 15% of assets.

Geneva:
And that's something that investors in SOR need to fully understand.

Mee:
These two are the second and third largest holdings in the fund, making up about 15% of assets.

Tenisha:
Those looking to play discounts and premiums, meanwhile, should also be on the sidelines.

Mario:
With that backdrop, SOR's discount, which has recently been averaging around 9% but has a three-year average of about 10%, has narrowed.

Thelma:
In fact, they've pretty much been holding the line.

Jolene:
But while the NAV has been falling, investors haven't reacted by selling the shares.

Latrisha:
SOR's NAV fell 2%, worse than the 0.3% or so loss for the Russell 2500 and the around 0.3% gain in the S&P.

Deena:
Indeed, during the first quarter, the market price of the shares went up along with the NAV.

Sharilyn:
So it's no surprise that investors would be generally pleased with the closed-end fund, or CEF.

Knight Transportation (NYSE:KNX)
//stockhand.net/us/?q=nyse%3Aknx&id=268375