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

To: Spekulatius who wrote (30128)	2/21/2008 11:32:38 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78753

ARCC: The negative thing about ARCC is that it was founded in 2004, so we don't know what its history or discipline is. It's smaller than ACAS, so perhaps it is more nimble, but then ACAS would be able to exert more control and perhaps attract more deals because of its size and reputation/history. I agree somewhat with your previous criticism of ACAS. I am not sure it is a great business, but might be OK business for current situation. I believe its ROE can only be expected to be in 12% range, high 2006 ROE being an aberration. On the other hand though, ARCC did not show very good results even in 2006. You could argue that it did not pursue risky business then, so it is safer or better but we don't really know. I am still holding ACAS planning to sell at 1.3-1.5 book: $42-48, though I may change my mind. I may diversify into AINV or ARCC, although so far all three companies have moved in lockstep with ARCC mostly underperforming for some reason.