Cornerstone Strategic Investment Fund vs First Merchants

Cornerstone Strategic Investment Fund and First Merchants are featured in this page to compare their business models, financial performance, and market context. The comparison focuses on how each organisation structures its portfolio, revenue drivers, and risk management, offering a neutral overview for readers seeking context. The content is designed to inform and clarify, not to promote or advise on any specific action. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

CLM

Metric

FRME

$2.08B

Market Cap

$2.18B

N/A

Potential Profit

15.94%

N/A

Analyst Rating

Buy

Investment Analysis

Cornerstone Strategic Investment Fund

CLM

Pros

Cornerstone Strategic Investment Fund offers a remarkably high dividend yield, currently above 17%, which may appeal to income-focused investors.
The fund provides diversification across global equity markets and sectors, including significant exposure to leading technology and growth companies.
As a closed-end fund, CLM can trade at a discount or premium to NAV, offering potential opportunities for tactical investors to capitalise on market inefficiencies.

Considerations

High distribution yields may not be fully covered by underlying earnings, raising questions about long-term sustainability and possible return of capital.
Closed-end fund structure means investors cannot redeem shares directly with the fund, relying instead on secondary market liquidity which can be volatile.
Portfolio holdings include other investment companies and ETFs, layering additional fees and complexity that could erode net returns.

First Merchants

FRME

Pros

First Merchants Corp operates as a regional bank with a strong presence in the US Midwest, benefiting from stable local economies and customer relationships.
The company has demonstrated consistent profitability and efficient operations, supported by a diversified loan portfolio and prudent risk management.
Recent net interest margin expansion and steady growth in deposits reflect resilience in a challenging interest rate environment.

Considerations

As a regional bank, First Merchants has heightened exposure to local economic cycles and potential concentration risk in its geographic footprint.
Regulatory scrutiny and compliance costs continue to rise for all US banks, potentially pressuring margins and operational flexibility.
Loan growth and asset quality face headwinds from broader economic uncertainty, including potential for rising credit costs in a slower growth environment.

About The Companies

Cornerstone Strategic Investment Fund (CLM)

Cornerstone Strategic Value Fund Inc, known by its ticker CLM, is a diversified, closed-end investment fund. Its primary objective is to seek long-term capital appreciation. To achieve this, it invests in a portfolio of equity securities (shares) from companies in both the United States and other international markets. This allows for broad exposure to global stock markets within a single investment. Uniquely, the fund can also invest in other closed-end funds and exchange-traded funds (ETFs). It's important to remember that as an investment fund, its value is tied to the performance of its underlying assets, which can rise and fall. Past performance is not an indicator of future results. CLM is managed by Cornerstone Advisors, LLC, which makes the decisions on which securities to include in the portfolio. The fund is also known for its high distribution policy, which may be of interest to those seeking potential income from their investments.

First Merchants (FRME)

First Merchants Corporation (ticker FRME) is a regional bank holding company headquartered in Indiana that operates community banks and provides commercial and consumer lending, deposit services and treasury management across several Midwestern states. With a market capitalisation around $2.13 billion, it concentrates on relationship banking for local businesses and households, aiming for steady loan growth and fee income. Key factors for investors include net interest margin trends, credit quality, deposit stability and capital ratios — all of which are sensitive to interest‑rate cycles and local economic conditions. The group has pursued modest expansion through a mix of organic growth and selective acquisitions while maintaining dividend distributions. That said, performance can vary with economic cycles, regulatory change and sector concentration risks. This information is educational and not personalised investment advice; investors should review up‑to‑date financial reports, consider their risk tolerance and consult a financial professional before making decisions.

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Trusted & Regulated

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6% Interest on Cash

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Cornerstone Strategic Investment Fund vs First Merchants

Comparison Snapshot

Investment Analysis

Cornerstone Strategic Investment Fund

Pros

Considerations

First Merchants

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy CLM or FRME in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Cornerstone Strategic Investment Fund vs Banner

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Frequently asked questions

Comparison Snapshot

About The Companies

Cornerstone Strategic Investment Fund vs First Merchants

Comparison Snapshot

Investment Analysis

Cornerstone Strategic Investment Fund

Pros

Considerations

First Merchants

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy CLM or FRME in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Cornerstone Strategic Investment Fund vs Banner

Cornerstone Strategic Investment Fund vs Hilltop Holdings

Cornerstone Strategic Investment Fund vs Stock Yards Bancorp

Frequently asked questions

What is the purpose of comparing a closed-end fund like Cornerstone Strategic Investment Fund with a bank stock like First Merchants?

How do closed-end funds differ from traditional open‑end funds or individual equities in readability and risk?

What does a high dividend yield imply in this context and what cautions should readers consider for Cornerstone Strategic Investment Fund?

What are the main drivers of First Merchants’ profitability and how could this influence risk and return?

How does diversification in Cornerstone Strategic Investment Fund affect potential returns and risks?

How might changes in interest rates affect a closed-end fund like Cornerstone compared with a regional bank like First Merchants?

What is NAV and why is it important when comparing Cornerstone to First Merchants?

What should readers know about liquidity when evaluating these two securities?

How can readers use this comparison to structure their own research approach?

What is the educational disclaimer for this page?

Comparison Snapshot

About The Companies