I've been adding to my Flaherty & Crumrine Total Return Fund (FLC) position in an attempt to benefit from potential future rate cuts. This fund is invested primarily in preferred securities and carries a high amount of leverage. That leverage was not hedged like many closed-end funds hedged their borrowings, so the fund was impacted quite negatively when rates rose. First, on the preferreds being sold off and then second by the higher costs of leverage.