olaser Introduction and Thesis I first wrote about Exxon Mobil Corporation (NYSE:XOM) in August 2023. Considering that my articles are written with a 5-10 year timeframe in mind, I didn’t anticipate writing a new piece on the company so soon after the first article. However, material developments regarding Exxon’s business that I wasn’t fully aware…
Martin Barraud Markets Review Past performance is not indicative of future results. Aristotle International Equity ADR Composite returns are presented gross and net of investment advisory fees and include the reinvestment of all income. Gross returns will be reduced by fees and other expenses that may be incurred in the management of the account. Net…
Igor Kutyaev/iStock via Getty Images (All MSCI index returns are shown net and in U.S. dollars unless otherwise noted.) Markets Review Sources: CAPS CompositeHubTM, Bloomberg Past performance is not indicative of future results. Aristotle International Equity Composite returns are presented gross and net of investment advisory fees and include the reinvestment of all income. Gross…
Shutter2U Co-authored by Treading Softly. A common mistake people make is failing to plan for the future. There is a classic saying that goes, “failing to plan is planning to fail.” This might seem harsh, but it does resonate in plenty of people’s life experiences. The reason is that, while it is important to enjoy…
Rand Capital (NASDAQ:RAND) Q1 2024 Earnings Conference Call May 13, 2024 1:30 PM ET Company Participants Craig Mychajluk – Investor RelationsDaniel Penberthy – President and CEOMargaret Brechtel – EVP and CFO Presentation Operator Greetings and welcome to Rand Capital Corporation’s First Quarter Fiscal Year 2024 Financial Results. At this time, all participants are in a…
Palmer Square Capital BDC Inc. (NYSE:PSBD) Q1 2024 Earnings Conference Call May 7, 2024 12:00 PM ET Company Participants Andrew Wedderburn-Maxwell – Investor RelationsChris Long – Chairman and Chief Executive OfficerAngie Long – Chief Investment OfficerMatt Bloomfield – PresidentJeff Fox – Chief Financial Officer and Director Conference Call Participants Melissa Wedel – JPMorganKenneth Lee –…
Invesco Mortgage Capital Inc. (NYSE:IVR) Q1 2024 Earnings Conference Call May 9, 2024 9:00 AM ET Company Participants Greg Seals – IRJohn Anzalone – CEOBrian Norris – CIO Conference Call Participants Trevor Cranston – Citizens JMPEric Hagen – BTIG Operator Welcome to Invesco Mortgage Capital Incorporated’s First Quarter 2024 Investor Conference call. All participants will…
PM Images There are many insurance companies, but the quest to find ones that keep growing and maintain underwriting profits can be tricky. Thankfully, we find one such company in Kinsale Capital Group (NYSE:KNSL). With an impressive track record, I’ll go over what they do, why they do it well, and why the price is…
Manoj Madusanka/iStock via Getty Images Dear Investors, Through the end of the first quarter of 2024, the Massif Capital Real Assets Strategy was up 0.96% net of fees, with gains from both the long and short books. As the letter is getting out after the close of April, it is worth highlighting that we were…
Alistair Berg Standing at the Intersection of Hope and Fear In the first quarter of 2024, most major equity market indices rallied to all-time highs on the growing potential of an artificial intelligence (AI) revolution. In contrast, longer-term interest rates were pushed higher as investors scaled back expectations of interest-rate cuts this year. Bond markets…
4kodiak/E+ via Getty Images I’ve been buying more Trinity Capital (NASDAQ:TRIN) since the internally managed venture debt BDC last declared a quarterly cash dividend of $0.51 per share, this was a 2% increase from its prior quarter and $2.04 annualized for a 13.8% dividend yield. This hike came as the Fed gears to keep base…
John M Lund Photography Inc Uniti & Windstream Merger Uniti Group Inc. (NASDAQ:UNIT) is merging with Windstream. Things rarely come in such a perfect full circle in the capital markets as this one. UNIT was spun out of Windstream as a REIT almost 10 years back. The transaction was touted as the best things since…
Trinity Capital Inc. (NASDAQ:TRIN) Q1 2024 Results Conference Call May 1, 2024 12:00 PM ET Company Participants Ben Malcolmson – Head of Investor RelationsKyle Brown – Executive OfficerMichael Testa – Chief Financial OfficerGerry Harder – Chief Operating OfficerRon Kundich – Chief Credit OfficerSarah Stanton – Chief Compliance Officer and General Counsel Conference Call Participants Bryce…
baona/iStock via Getty Images Recently, I penned an article titled “Who’s Chasing Yield?” in which I explained that: “it’s critical to examine the “margin of safety” with the dividend, to make sure that these picks don’t turn into a so-called “sucker yield.” There are plenty of these so-called “sucker yields” in the mortgage REIT sector….
Hiroshi Watanabe Late December last year, I issued an article comparing the largest BDC – Ares Capital (NASDAQ:ARCC) – with the second largest one, FS KKR Capital (FSK). While I was bullish on both BDCs, I preferred allocating slightly more in FSK due to the following reasons: FSK traded at a discount to NAV, while…
PM Images Overview In an environment of higher interest rates, I believe that Business Development Companies are the right place to be! BDCs are a great way to offset the higher rates with a higher level of dividend income, since they direct profit from debt investments. Higher rates translate to higher interest you can collect…
tadamichi Late December last year, I issued my first article on Trinity Capital Inc. (NASDAQ:TRIN), which focuses on providing debt and equipment financing to growth stage and smaller size companies. In terms of the typical investments, which TRIN offers to these companies, there is nothing extraordinary as the lion’s share of the portfolio consists of…
PM Images Overview The rise of interest rates has left many investors scrambling to find the best deals in the market. Unfortunately, many people in the world are on the wrong side of the cash register; they provide the dividends, interest, and debt for the major corporations in the world and dish out most of…
Hong Kong’s Securities and Futures Commission recently approved Bitcoin Spot ETFs for several major asset managers, paving the way for the city to become a leading hub for such products. The approval comes after months of anticipation and marks a significant milestone for the Bitcoin industry in Asia. JUST IN: 🇭🇰 Hong Kong spot #Bitcoin ETFs…
tadamichi Investors, For the first quarter of 2024, Deep Sail Capital Partners (the “Fund”) returned 13.0% net of fees while averaging 84% net long exposure. Please consult your individual capital account statements for your individual net returns. In the first quarter, the fund outperformed our benchmarks, the Russell 2000 index and the Russell Mid-Cap Growth…
Supatman/iStock via Getty Images To our clients & friends, For the first quarter and year ended March 31, 2024, the Giverny Capital Asset Management (“GCAM”) model portfolio performed as follows:1 We’ve had an extended stretch of strong performance, with our model portfolio rising nearly 40% over the past year. Obviously, this feels pretty good. The…
Gary Yeowell Texas Capital Bancshares (NASDAQ:TCBI) has just released its Q1 2024 results and the market first reacted positively (+3.50% in pre-market): GAAP EPS of $0.46 misses by $0.12. Revenue of $256.33M (-6.0% Y/Y) beats by $3.25M. The net interest margin has returned to growth and management is confident of a price-per-share recovery. In fact,…
Galeanu Mihai/iStock via Getty Images By Samantha McLemore A Differentiated View on Diversification “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” – Misquote by Charles Darwin Patient Opportunity Equity strategy advanced 11.8% net of fees in the…
Jonathan Kitchen In this article, we highlight the business development company (“BDC”) Gladstone Capital (NASDAQ:GLAD). GLAD operates in the lower middle-market segment, targeting companies with EBITDA of $3-25m. Its top sectors are Healthcare, Education and Manufacturing. An absence of significant Technology sector lending is one key difference between this and most other BDCs. About 80%…
Graphic designer/iStock via Getty Images Performance Review As of March 31st, 2024 NAV increase, net Cum Incept PF 2019 2020 2021 2022 2023 1Q/24 WBCP 82.04% 17.60% 19.05% 37.16% (15.38%) 8.38% 3.36% S&P 400 66.88% 5.72% 13.66% 24.76% (13.06%) 16.45% 9.96% Click to enlarge Inception of White Brook Capital Partners was August 16, 2019 Performance…
Sumedha Lakmal/iStock via Getty Images The performance of securities mentioned within this letter refers to how the security performed in the market and does not reflect the performance attributed to the core equity portfolio. Please see the chart at the end of letter, which reflects the full list of contributors and detractors based on each…
Baloncici Summary Following my coverage of Tesco (OTCPK:TSCDY), for which I recommended a buy rating due to my expectation that TSCO will see its valuation multiples if its business performance continues to improve, this post is to provide an update on my thoughts on the business and stock. I reiterate my buy rating for TSCO…
MCCAIG Stubbornly strong economic data has led to significant shifts in market expectations for when, and how quickly, the Federal Reserve will begin cutting policy rates. Our own forecast is now for the first rate reduction to come in September, but the complications of starting an easing cycle just before the U.S. Presidential election does…
Avalon_Studio “Even the most intelligent investor is likely to need considerable willpower to keep from following the crowd.” – Benjamin Graham Back to Back With the end of the first quarter in the books, the S&P 500 Index return in Q1 totaled 10.56%. This double-digit return follows the fourth quarter 2023 return of 11.69%. Since…
Klaus Vedfelt Main Street Capital (NYSE:MAIN) is a high0quality business development company that has delivered strong and consistent results related to its lower middle market loan portfolio in the last couple of years. Even though the BDC comfortably covers its dividend with net investment income, the stock has gotten a little bit ahead of itself…
SARINYAPINNGAM Vanguard Long-Term Treasury Index Fund ETF Shares (NASDAQ:VGLT) is an ideal way to buy longer duration U.S. Treasury Bonds and lock in a yield of about 4.5% (SEC 30-day yield). This yield is close to what money market funds currently offer, but investors who remain in money market funds are likely to see yields…
justocker The Dominion Buy Thesis There is a tremendous spread between the sentiment on Dominion Energy, Inc. (NYSE:D) and its fundamental forward outlook. The market is approaching D with apprehension and trading it at low multiples while the fundamentals look strongly positive given the rapid growth in energy needs in Northern Virginia (NOVA) with D…
8vFanI Rising interest rates have been a boon to Business Development Companies, known as BDC’s, over the past 1 year-plus. Several of them have reported record earnings, including Golub Capital BDC (NASDAQ:GBDC), which saw 55% growth in Investment Income and 49% growth in Net Investment Income, NII in its fiscal year ending 9/30/23. 99% of…
Vivek Vishwakarma Now’s a great time to be an income investor, as when the market is pre-occupied with chasing growth, investors can pick off +9% yields with ease. Such is the case with BDCs at this time, and this brings me to Capital Southwest (NASDAQ:CSWC), which I last covered in early January, highlighting its strong…
ricardoreitmeyer Early January this year, I wrote a bullish article on Blue Owl Capital (NYSE:OWL) establishing a clear buy rating considering the underlying focus on private credit space, which exhibits secular tailwinds. Another driver behind the bull thesis here was the relatively attractive dividend of ~ 4% that in conjunction with resilient and growing asset…
DjelicS/iStock via Getty Images Introduction Some investors may prefer to invest in other sectors like tech or consumer staples because of the capital appreciation those stocks tend to offer. But one sector that has offered investors some capital appreciation in the last few years is the BDC sector (BIZD). Since I’m constantly building and adding…
bjdlzx I assume most of my readers are familiar with Western Midstream Partners LP (NYSE:WES). For others briefly, WES is a midstream operator with natural gas gathering, operating, and transporting as its major business. Two other businesses are oil and NGL transporting; and gathering and disposal of produced water. Please refer to other sources for…
scalatore1959/iStock via Getty Images Overview I previously covered Hercules Capital (NYSE:HTGC) back in August of 2023. Since then, HTGC has delivered a total return of over 13% due to the consistent NII (net investment income) growth and high dividend distributions. The price has run up over the last 6 months and now the dividend yield…
Userba011d64_201 As buying low and selling high is the well-known and fundamental principle of investing, I believe, less-known lower middle-market lender Monroe Capital (NASDAQ:MRCC), could be one of the options that perfectly fits on principle. Its stock price lost nearly 27% in value in the past three years due to temporary setbacks, such as a…
MF3d Introduction With the FED meeting over now and 3 rate cuts still on the table by the end of the year, I think now is the time to be buying stocks in one of my favorite sectors (XLRE), the REIT sector. Historically, they move in the opposite directions of interest rates, and they have…
McKevin Main Street Capital (NYSE:MAIN) seems one of the most coveted BDCs on the Street as the company has delivered consistent net asset value per-share growth over the life of the company. While Main Street consistently handed dividend raises to its shareholders, the BDC seems overpriced with a 58% premium to net asset value… which…
Pixelimage Trinity Capital (NASDAQ:TRIN) is a well-managed BDC that despite net realized losses in 2023 enjoyed substantial portfolio growth in the last year. The BDC also out-earned its dividend with net investment income as well as fully earned its special dividends paid last year. Trinity Capital is floating-rate positioned BDC, meaning the BDC should profit…
Andrii Dodonov Shares of Jackson National (NYSE:JXN) have been a tremendous performer over the past year, rising 70%. Elevated rates and rising equities continue to support results, and its capital position is now stellar. Since reiterating Jackson as a “strong buy” in December, shares have rallied a further 24%, bringing their return to nearly 60%…
Torsten Asmus/iStock via Getty Images Capital Markets Highlights In Q4 2023, U.S. stock1 and bond2 markets rallied on improving inflation data, strong economic growth, and comments from Fed Chair Powell suggesting the Fed’s interest rate hiking cycle is over and the prospects for a rare economic soft landing are improving. The quarter started poorly with…
metamorworks Stellus Capital Investment Corporation (NYSE:SCM) is a well-managed business development company with a focus on middle-market companies. The BDC just released earnings for the last quarter which showed that the dividend remained well-covered by core net investment income. The BDC still profits from a higher-rate environment, thanks to an aggressive floating-rate posture, and Stellus…
Dilok Klaisataporn Crescent Capital (NASDAQ:CCAP) could be the right option for a dividend portfolio due to its potential to generate solid returns over the long term. Moreover, the BDC offers downside protection as its debt investment portfolio is substantially diversified with an average investment size of 0.5% and a high concentration on non-cyclical sectors. Moreover,…
Olga Kaya/E+ via Getty Images Ladder Capital (NYSE:LADR) is a mortgage lender focused chiefly on short term, variable rate balance sheet first mortgage loans. The REIT has been confronted with concerns about the quality of its loan book due to a growing CECL reserve. While there are risks in the portfolio, especially as they concern…
Start Time: 11:00 End Time: 11:20 January 1, 0000 ET Q4 2023 Earnings Conference Call March 12, 2024, 11:00 AM ET Company Participants Ted Koenig – Chairman and CEO Mick Solimene – CFO and Chief Investment Officer Alex Parmacek – Deputy Portfolio Manager Conference Call Participants Christopher Nolan – Ladenburg Thalmann Operator Welcome to Monroe…
8vFanI Business Development Companies, BDCs, have had a bit of a windfall from rising rates in 2023 due to the fact that most of them have a high % of floating rate investments, with a lower rate of floating rate borrowings. Company Profile BlackRock TCP Capital Corp (NASDAQ:TCPC) is an externally-managed specialty finance company focused…
syahrir maulana The Dimensional U.S. Small Cap ETF (NYSEARCA:DFAS) benchmarks against the Russell 2000 Index to offer smallcap exposure to investors in an attractive and relatively inexpensive (0.26% expense ratio) package that attempts to do the following: maximize the after tax value of a shareholder’s investment. Generally, the Advisor buys and sells securities for the…