ORNAX: A Muni fund turning into a REIT? By Lee Munson and Charles R. Major

Lee Munson and Charles R. Major provide independent fund research on Oppenheimer Rochester National Muni A (ORNAX ).

During the 2008 crash, Oppenheimer Rochester National Muni A (ORNAX ) lost over 50% of its worth. It was one of the very worst performers. Before that it had been one of the best. Investors were clearly not expecting that type of drawdown that fast. In an article our firm wrote near the end of 2008, we discussed the oft-misunderstood tobacco revenue bonds, which made up a substantial portion of ORNAX’s bond purchases. The uncertainty of these bonds, coupled with investors’ general misunderstanding of them, led them to be mispriced and under-appreciated. These bonds are still mispriced and under-appreciated today. And they still make up the largest of ORNAX’s holdings, at around 22%. However, when we recently looked under ORNAX’s hood, we found something more interesting. Management has decided on a philosophy that could lead them to enter the property management business, a move that should concern any investor.

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Hey, Check This Out! More REITs and Commerical Concerns — Experts weigh in on the current state of the national market

Another Oklahoma blogger has posted three CNBC appearances regarding the commerical estate industry. Check out the third video posted HERE.