Hercules Capital: My Last Purchase Got Me A 15.6% Yield

Mar. 17, 2023 12:58 AM ETHercules Capital, Inc. (HTGC)HTGC62 Comments
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Summary

  • Hercules Capital got clobbered due to its venture capital and Silicon Valley focus.
  • HTGC has no real exposure to Silicon Valley Bank. The liquidity situation is solid.
  • Investors should keep in mind that HTGC covers its dividend with NII.
  • Valuation now reflects a very high margin of safety.

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Silicon Valley Bank, which was specifically focused on serving venture capital firms based in Silicon Valley, was forced out of business last week following a bank run, and Hercules Capital Inc. (NYSE:HTGC) took a significant valuation hit as

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of HTGC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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