Stone Fox Capital
Long/short equity, growth at reasonable price, research analyst, Deep Value

Hercules Technology Benefits From Limited Defaults

Investors looking for a stock that provides large yields from investing in venture capital firms should look no further than Hercules Technology Growth Capital (NASDAQ:HTGC). Considering the company invests in early stage, venture backed firms; it might surprise the investment community that the company has a limited history of payment defaults. Historically, the net realized loss since inception only represents 1.1% of total commitments or an annualized loss rate of only a low 13 basis points. So if the company has historically lost only $42.8 million on a substantial investment portfolio over 10 years, why has the stock historically paid high dividends?

Hercules Technology is a leading specialty finance company that focuses on loaning senior secured debt...

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