John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Rand Capital Trades At A Significant Discount To Its Growing Book Value

Company overview

Rand Capital (NASDAQ:RAND) is a business development company (NYSE:BDC) that provides venture capital funding and managerial assistance to small and medium-sized companies headquartered in the Western and Upstate New York region. The typical initial investment is $0.5-1 million through equity, debt or both.

An opportunity to buy a (growing) $1 for $0.74

The fact that a vast majority of VC alpha is captured by the top quartile funds results in investors searching for "alternative alternatives" given that many of these funds are closed to new investors. Buying a BDC trading at a significant discount to book value such as RAND is an attractive alternative, especially compared to others such as buying shares on private...

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