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  • BDCs At 52-Week Lows Before Q2 2015 Earnings [View article]
    DJ - I think most sites use adjusted NII as EPS for each BDC which usually adjust for large onetime expenses and capital gains. I use Thomson Reuters I/B/E/S Estimates that is the same as Yahoo.
    Aug 2, 2015. 10:29 PM | Likes Like |Link to Comment
  • Fifth Street Finance: Will New Management Do The Right Thing? [View article]
    BillBDC - Thank you for sharing your opinion. However, this article did not discuss asset quality so I'm not sure how it could be a huge miss. i have plenty of articles discussing FSCs poor results in a benign credit environment that basically points to the company having a frothy portfolio regardless of being first or second lien. Clearly investors understand this and have discounted the stock accordingly.
    Aug 2, 2015. 10:17 PM | Likes Like |Link to Comment
  • Fifth Street Finance: Will New Management Do The Right Thing? [View article]
    zmarzz - Cauchy also suggested working through an activist hedge fund like Corvex or Raging Capital.

    Corvex:
    Name: Keith Meister
    Title: Managing Partner
    Phone: 212-474-6700

    Raging Capital:
    Name: Frederick C. Wasch
    Title: Chief Financial Officer
    Phone: 609-357-1870
    Aug 2, 2015. 04:51 AM | 1 Like Like |Link to Comment
  • BDCs At 52-Week Lows Before Q2 2015 Earnings [View article]
    B1 - Are you affiliated with NEWT? You mention the company in each of your posts on every article and usually unrelated to the discussion.
    Aug 2, 2015. 04:47 AM | 3 Likes Like |Link to Comment
  • Fifth Street Finance: Will New Management Do The Right Thing? [View article]
    BillBDC - Please see my comment above. Not all first lien is the same and I will cover in another article. FSC talks the talk but the results show something different.

    Different BDCs have different investment philosophies with fee structures to match. Higher yield BDCs experienced more yield compression on average so their fee structures resulted in reduced dividends.
    Aug 2, 2015. 04:28 AM | Likes Like |Link to Comment
  • Fifth Street Finance: Will New Management Do The Right Thing? [View article]
    Hardog and Surfgeezer - I will admit that FSC used to be one of my primary BDC holdings in 2013 but trimmed down over time. Management discussed a flight to quality but credit issues still prevailed in a benign credit environment.
    Aug 2, 2015. 04:25 AM | Likes Like |Link to Comment
  • Fifth Street Finance: Will New Management Do The Right Thing? [View article]
    Mevo - Please appreciate that I'm trying to be realistic with my responses.

    Another good idea is for investors to participate in the upcoming earnings calls and ask tough questions. Many of the analysts on the calls have conflicts of interest due to banking relationships.

    This article discussed the best use of proceeds from the HFG sale and might be a good question. Obviously I believe the most important questions are related to asset quality. If management started repurchasing shares as well as included any potential capital losses as a part of their incentive fees going forward it would indicate that management believes in the current portfolio marks. Many other BDCs have done this and it would not impact the current amounts paid to management but it would help with investor confidence and hopefully the stock price.
    Jul 31, 2015. 08:52 PM | 3 Likes Like |Link to Comment
  • Fifth Street Finance: Will New Management Do The Right Thing? [View article]
    Chagrin - I originally started tracking around 25 BDCs and slowly took a few off but tried to add only the ones that I considered 'higher quality'. FSFR was over $14 and then had a large dilutive offering. I considered this to be non-shareholder friendly and when combined with some of the share issuance and dividend policies at FSC, I decided that the management of these companies might not be top tier. I kept FSC on my active watch list but never added FSFR.
    Jul 31, 2015. 06:26 PM | 2 Likes Like |Link to Comment
  • Fifth Street Finance: Will New Management Do The Right Thing? [View article]
    WP - FSC and FSFR are very different companies. Let's just agree to disagree. This article did not discuss fee cuts and obviously you are just responding to trackstar2k2.
    Jul 31, 2015. 06:13 PM | 1 Like Like |Link to Comment
  • Fifth Street Finance: Will New Management Do The Right Thing? [View article]
    Mevo - I think it is a bit more complicated than that and maybe there is a large group of investors that would like to see increased alignment but it would probably need the BoD to be more active in order to get some real change.

    Management may have shut the door on changing the fee structure but they have hinted at using the share repurchase. I think even a small amount would show faith in the current portfolio valuations. At a 32% discount it seems like an easy return on capital.
    Jul 31, 2015. 05:27 AM | 2 Likes Like |Link to Comment
  • Fifth Street Finance: Will New Management Do The Right Thing? [View article]
    zmarzz - Unfortunately FSC is mostly retail shareholders and getting 50% would be like herding cats. It's easier just to sell and reinvest in one of the many BDCs with quality management. I get the feeling we will see more tax loss selling on a handful of BDCs again this year and will write an article near the end of November.

    Some YTD losses so far:

    -24% KCAP
    -24% HRZN
    -23% FSC
    -19% PNNT
    -18% TICC
    -15% PSEC
    Jul 31, 2015. 01:41 AM | 1 Like Like |Link to Comment
  • Fifth Street Finance: Will New Management Do The Right Thing? [View article]
    Cauchy - Discussing share buybacks for BDCs such as FSC is more of a mental exercise for investors. Same with fee discussions. These are old dogs with the old way of thinking.

    However, the exercise part is comparing and contrasting to the management of other BDCs. Especially newer BDCs that are trying to attract institutional investors that usually want management on the hook for capital losses.

    At this point the management of FSC is probably working to maximize fees paid to FSAM and a share buyback is not part of that program.

    TSLX is one of the newer BDCs with a $50 million share buyback program is effectuated on an algorithmic basis at threshold prices beginning just below NAV and is basically a price floor at $15.60.
    Jul 31, 2015. 01:34 AM | Likes Like |Link to Comment
  • Fifth Street Finance: Will New Management Do The Right Thing? [View article]
    darnoc - I agree on almost all points and I think that acquiring/consolidating another BDC is more difficult than just buying the assets or winding down like MCGC did which is now $150mm cash and $30mm portfolio.

    There is a potential for some BDCs to increase the risk of the portfolio as they rotate to higher yielding assets since they lack capital to grow. This could be a double whammy to shareholders with BDCs that do not include capital losses when calculating incentive fees.
    Jul 30, 2015. 11:27 PM | 3 Likes Like |Link to Comment
  • Fifth Street Finance: Will New Management Do The Right Thing? [View article]
    Mr Packer - FSFR is a completely different company that invest in much lower yielding assets.

    FSFR along with SUNS, PFLT, GBDC all have very different fee structures because they mostly invest in first lien with much lower yields.

    You are comparing apples to bowling balls.
    Jul 30, 2015. 11:17 PM | 6 Likes Like |Link to Comment
  • Fifth Street Finance: Will New Management Do The Right Thing? [View article]
    They brought the leverage down last quarter and have almost $110 million in cash so they could use part cash and part proceeds and it would only have a nominal impact to leverage.

    I agree with rock and a hard place but without shareholder trust the stock price is likely not going anywhere.
    Jul 30, 2015. 10:50 PM | 5 Likes Like |Link to Comment
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