| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 145.97 | 1279 |
| Intrinsic value (DCF) | 5625.75 | 53037 |
| Graham-Dodd Method | 8.90 | -16 |
| Graham Formula | n/a |
BlackRock Virginia Municipal Bond Trust (BHV) is a closed-end fixed income mutual fund managed by BlackRock Advisors, LLC, a subsidiary of BlackRock, Inc. (BLK). Launched in 2002, BHV primarily invests in investment-grade municipal bonds that are exempt from federal income taxes and Virginia state personal income taxes, making it an attractive option for tax-sensitive investors in Virginia. The fund focuses on generating tax-free income through a diversified portfolio of high-quality municipal debt securities. Operating in the Financial Services sector under the Asset Management - Bonds industry, BHV provides investors with exposure to Virginia's municipal bond market while benefiting from BlackRock's extensive credit research and risk management expertise. With a market capitalization of approximately $16.1 million, BHV trades on the New York Stock Exchange (NYSE) and appeals to income-focused investors seeking stable returns with tax advantages.
BlackRock Virginia Municipal Bond Trust (BHV) offers a niche investment opportunity for Virginia residents seeking tax-exempt income. The fund's focus on high-quality municipal bonds provides relative stability, supported by BlackRock's strong credit analysis capabilities. However, BHV's small market cap (~$16M) and reliance on Virginia's municipal debt market introduce concentration risk. The fund's 0.62 dividend yield (based on $0.62/share annual dividend) is competitive for tax-advantaged accounts, but interest rate sensitivity (beta: 0.917) remains a key consideration in rising rate environments. With no capital expenditures and positive operating cash flow ($2.78M), BHV maintains a sustainable distribution policy, but leverage (total debt: $11.56M) warrants monitoring. Suitable for conservative investors prioritizing tax efficiency over growth.
BHV's competitive advantage lies in its specialized focus on Virginia municipal bonds, offering unique tax benefits unavailable through national municipal bond funds. BlackRock's scale provides access to superior credit research and liquidity management compared to smaller municipal bond trusts. The fund's exemption from both federal and Virginia state taxes creates a compelling value proposition for in-state investors that national competitors cannot match. However, this geographic specialization also represents a limitation, as the fund lacks diversification outside Virginia's credit environment. BHV competes primarily on tax efficiency rather than yield, as its investment-grade mandate results in lower default risk but also lower potential returns than high-yield municipal strategies. The fund's small size may limit trading liquidity compared to larger BlackRock municipal products, though the parent company's reputation mitigates this somewhat. BHV's expense ratio (implied at ~0.6% based on revenue/assets) is competitive for actively managed municipal CEFs but higher than passive alternatives.