PFO

Flaherty & Crumrine Preferred and Income Opportunity Fund Inc. (PFO) is a diversified, closed-end management investment company that seeks to provide high current income for its shareholders. The fund invests primarily in preferred securities and other income-producing securities, with an emphasis on investment-grade preferred stocks issued by U.S. companies. PFO is managed by Flaherty & Crumrine Incorporated, an investment advisor based in Pasadena, California, that specializes in preferred securities and has managed preferred stock portfolios since 1983. The fund employs leverage as part of its investment strategy to enhance returns, typically maintaining leverage levels between 25% and 38% of managed assets. PFO's portfolio consists predominantly of preferred securities from the financial services sector, including banks, insurance companies, and REITs, though it maintains diversification across multiple industries. As a closed-end fund, PFO trades on the New York Stock Exchange and its market price may differ from its net asset value per share. The fund pays monthly distributions to shareholders, making it attractive to income-focused investors. PFO's investment approach combines fundamental credit analysis with attention to market structure and technical factors in the preferred securities market, positioning it as a specialized vehicle for investors seeking exposure to this particular asset class.