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  • Cash Flow Vs. GAAP: The Battle Goes On At Eagle Point Credit And Oxford Lane Capital [View article]
    There are some other BDCs, CEFs which have heavy slugs of CLO equity as well. ARCC's sslp structure could also be thought of as something like that too.
    Mar 6, 2015. 05:23 PM | Likes Like |Link to Comment
  • Avenue Income Credit Strategies Fund (ACP) - Disappointing Dilution Deserves Discount [View article]
    It's been almost a year, and unfortunately, mgmt.'s concentrated approach to dodgy credit didn't pan out so well over the last 12m. Versus their better balanced peers they were down far more sharply. Holders have lots of reasons to be disappointed here.
    Jan 6, 2015. 11:24 AM | Likes Like |Link to Comment
  • Colony Financial: Turning Distress Into Income [View article]
    Mgmt is going to be internalized here, and the market likes that, having bid the shares up on that news. In BDC and mREIT land, the internally mgd entities tend to command better P/B ratios in the market place, reflecting the better set of incentives that are in place.
    Jan 5, 2015. 04:55 PM | Likes Like |Link to Comment
  • BlackRock Multi-Sector Income Trust - Earnings Exceed Current Dividend [View article]
    Well it turned out they were over earning, as demonstrated by the special cash that went ex at year end. NAV performance in 2014 was very solid, for a bond fund. Kudos to management.
    Jan 5, 2015. 04:53 PM | Likes Like |Link to Comment
  • Frontrunning Yield Shares High Income ETF YYY And ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN CEFL: Could You Have Profited? [View article]
    This is what happens when you index, or buy an index driven 'product', in markets that are not liquid.

    UBS was unlikely to incompetent in running their hedges. What happened is just what happens when one tries to trade more than what the natural liquidity is in a set of names.

    Sam Lee at M* in his assessment of the CEF type of funds (levered and regular) noted that the rebalancing costs were very large, and not obvious from a stated ER. I did my own back of envelope analysis once and was stunned, so I've never signed up for any of these things.
    Jan 5, 2015. 04:36 PM | 2 Likes Like |Link to Comment
  • Apollo Tactical Income Fund - Strong Carry For Low Volatility [View article]
    As suggested a few months ago, the special div has been announced.


    UPDATE: Apollo Tactical Income Fund Inc. Declares Special Year-End Distribution of $0.252 Per Share

    Business Wire

    NEW YORK -- December 16, 2014

    (NYSE:AIF) Apollo Tactical Income Fund Inc. (the “Fund”) issued a press release announcing the declaration of a special year-end distribution of $0.252 per common share to shareholders of record at the close of business on Thursday, December 18, 2014. At the request of the New York Stock Exchange, the effective record date for the distribution has been changed to the close of business on Friday, December 26, 2014. The payment date remains December 31, 2014. The Fund’s $0.117 per common share distribution for the month of December 2014 is not affected by this change of record date.

    As required under the Investment Company Act of 1940, a notice with the estimated components of the distribution will be sent to shareholders at the time of payment if the distribution does not consist solely of net investment income.

    At present, it is estimated that a portion of the Fund’s special year-end distribution will be paid from capital gains (approximately 64.7%) with the remainder paid from net investment income (approximately 35.3%). These percentages are estimates only and may change before the distribution notice is sent to shareholders. Neither this announcement nor the notice should be used to prepare tax returns as the estimates indicated in the notice may differ from the ultimate federal income tax characterization of distributions. The amounts and sources of the distribution provided in this announcement are only estimates and are not being provided for tax reporting purposes. After the end of the calendar year, investors will be sent a Form 1099-DIV which will state for Federal income tax purposes the amount and composition of distributions with respect to their appropriate tax treatment for the 2014 calendar year.

    Forward-Looking Statements This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions related to the Fund’s expectations regarding the performance of its business, its liquidity and capital resources and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words “believe,” “anticipate,” “estimate,” “expect,” “intend” and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks relating to the Fund’s dependence on certain key personnel, market conditions generally, changes in the regulatory environment, the variability of Fund revenue, net income and cash flow, the Fund’s use of leverage and other risks.

    Product Literature, 888-301-3838
    Apollo Global Management, LLC
    Gary M. Stein, 212-822-0467
    Head of Corporate Communications
    Dec 19, 2014. 01:20 PM | Likes Like |Link to Comment
  • Credit Risk, Equity Returns: Interpreting Oxford Lane Capital's Financial Results [View article]
    One thing to watch with NAV in these kinds of companies is where does mgmt. issue more stock. If they issue below stated NAV, its hard to take the published figures very seriously. I (personally) knock 10% off the stated figures to account for the dilutive practices, and the fact that CLO equity is difficult to know the value of.
    Dec 9, 2014. 12:47 PM | Likes Like |Link to Comment
  • Tortoise Energy Infrastructure Looks Really Cheap [View article]
    George - nice article. I thought RIC accounting had the liabilities marked at notional / face value not market value. That would affect how quickly the pfds pull to par got fed into NAV. Am I misremembering this?
    Nov 12, 2014. 10:42 PM | Likes Like |Link to Comment
  • Markel: Not The 'Baby Berkshire' People Claim It Is [View article]
    For all those using PE as a valuation metric here - there are some issues using that as a metric for financial co's. That works better for typical industrials.

    Im kind of surprised how much MKL has rallied the last few months.
    Nov 12, 2014. 04:51 PM | 1 Like Like |Link to Comment
  • Prospect Capital: Is A Dividend Cut On The Way? [View article]
    Looks like mgmt is resorting to the "the market is not recognizing our value creation, so we're spinning off the divisions" strategy. This is more plausible for industrial type companies, but less so for financial engineer types like PSEC mgmt. Raising capital below NAV, and then expending it in efforts that are poorly valued by public markets, and then spinning it out is pretty much a negative entropy chain.

    Shareholders would have been better off if they had not done any of that. Mgmt of course gets massively more in AUM based fees than what they have invested in the vehicle. So there's no talk of smart or disciplined growth there.

    Just think about this - issuance below NAV?! People looking at yield need to subtract that drag right off the stated, indicative yield, when mgmt is doing that. It's rare (most companies shrink their share count if markets are not rewarding their biz plans) but what a bunch of destruction is going on here.

    Not invested in PSEC, but watch it to see how bad vehicles are run, sort of like watching Venezuela in comparison to other LatAm nations, to know what the bounds are for foolishness....
    Nov 10, 2014. 11:32 PM | 5 Likes Like |Link to Comment
  • Safe And Sound: The Tale Of Plumb Creek Lumber [View article]
    Lehman Bros. bought back a ton of stock too before imploding too. It's not the best argument for investing in a corporations equity, although under the right set of conditions it's a plus.

    There are some good things going on at PCL, but the author should dig a little deeper and perhaps pull up some comparative values. Disciplined mgmt, along with a growing (heh!) intrinsic value that comes from organic efforts rather than financial leverage can compound wealth well enough. Timber is probably going to be needed in the future no matter what is going in tech space, pharma, or what not.
    Nov 10, 2014. 11:11 PM | Likes Like |Link to Comment
  • Markel: Not The 'Baby Berkshire' People Claim It Is [View article]
    A name to look at for those who like this kind of company, is 20 HK - Wheelock. It has some of the same kind of bv compounding power....
    Nov 10, 2014. 10:51 PM | Likes Like |Link to Comment
  • Markel: Not The 'Baby Berkshire' People Claim It Is [View article]
    It's interesting how many commenters here all traffic in the same bag of names. I used to like L too....but feel like somehow they've lost their mojo.
    Nov 10, 2014. 10:50 PM | Likes Like |Link to Comment
  • Markel: Not The 'Baby Berkshire' People Claim It Is [View article]
    nice article. perhaps the important part is what percent of the MKL market cap is represented by the equity portfolio when compared to BRK or Y or WTM et al.
    Nov 10, 2014. 07:16 PM | Likes Like |Link to Comment
  • Equity CEFs: A Legg Mason Fund At A Double Digit Discount Outperforming The S&P 500 [View article]
    Thanks for the detailed color. Fido's phone reps dug into it for me and verbally stated that (after checking some random holders 1099 for 2013 filing year) that they were showing both ROC and OI on that 1099. Does that sounds right too you?

    I think I'll call Legg Mason next week too. I like what mgmt is doing in the vehicle, but the tax confusion is vexing.
    Nov 9, 2014. 02:42 AM | Likes Like |Link to Comment