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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (19191)	5/8/2004 3:56:52 PM
From: Area51	Respond to of 78670

I think AINV paid about 6% to the investment brokers so they should have started with a book value of about 14.10 (a post on bdcinvestor.com which is a good source of info on these companies said $14.06). I added to ACAS yesterday myself and wouldn't mind adding again on ACAS under $25 or AINV around $13 as an improving economy and increasing interest rates should not be detrimental to these companies IMO. Per ACAS: Our plan also anticipates an improving economy and a rising interest rate environment. Because our portfolio is hedged, changes in interest rates should have little impact on our marginal yield. And, with $569 million of equity interest in portfolio companies, an improving economy bodes well for future capital gains. They also addressed the competition concern and I think the impact should be non-material We do not believe the new BDCs that have recently gone public and those that may follow will have a meaningful impact on our business. Private equity and mezzanine partnerships raised over $26 billion last year, one of the lowest levels in years, increasing the pool of available capital to over $90 billion. The amount of capital that may be raised by these new BDCs represents a small fraction of the capital with which we compete and will likely be replacing capital that would otherwise be raised by partnerships." ACAS quotes are from biz.yahoo.com But I'm a recent investor in these and have done nothing but lose money so far so don't listen to me <g>, Area51

To: Paul Senior who wrote (19191)	5/8/2004 9:31:20 PM
From: cfimx	Respond to of 78670

good background paul...glad and good are two that should also go on the list to watch...

To: Paul Senior who wrote (19191)	5/9/2004 12:29:46 AM
From: Grommit	Respond to of 78670

There is an article in "the economist" magazine April 24 page 78 on the recent public offerings of private-equite firms. The speak of Apollo, KKR, Blackstone, Keslo and Evercore. They mention the old hands ALD, ACAS. They criticize Apollo's high management fees and incentive fees. "none of this seems to have deterred investors" they say. The are critical of the capabilities of the new firms. They also mention that a lot less money has been raised by private-equity funds (so there should be room for the additional firms, but they mention that the industry has matured so that hitting "a home run" on an investment is much harder now. also see: bdcinvestor.com Thre's a lot of opinion expressed the the fine magazine articel and I am sure that I have not covered it all, or may have misstated some of it. economist.com Hang on to your wallet or dig very deep to know what you are getting into.