Legendary investor George Soros is controversial, but his tremendous investment performance over a lifetime is indisputable. Soros attributes it to a concept called “reflexivity.” Simply put, this refers to the tendency for market expectations to create market outcomes. For instance, when the market expects a fund to crash, it will sell off that fund, thereby causing it to crash. Here’s the opportunity: when a fund crashes just because everyone thinks it will, the fund tends to bounce back when everyone realizes the market made a mistake. This happens constantly in the closed-end fund (CEF) universe—a relatively small world of $300 billion in assets managed in about 500 funds.… Read more