LMP Capital and Income Fund: Strong Performance, Moderate Discount

The LMP Capital and Income Fund (SCD) has consistently outperformed its benchmark and peer group, delivering strong returns over the years. Its portfolio composition is well-positioned for the current economic environment, with overweights in energy, real estate, and value-oriented stocks. While the current discount to NAV is near historical highs, SCD remains an attractive long-term investment. Its focus on MLPs and REITs sets it apart from peers who are more heavily allocated to tech stocks or high-yield fixed income vehicles. However, higher expenses and a potential impact on distributions in the short term warrant caution.

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