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Sector Watch: US Asset Management Stocks, High-Yield ARCC and BKCC

October 28, 2013 | About:
Sally Jones

Sally Jones

49 followers
The U.S. asset management sector currently lists 25 stocks out of 132 on a 52-week low, and the sector low ratio is 0.19. GuruFocus research shows that billionaires are avoiding most of these 25 companies on a low, but here are three companies held by billionaires and insiders.

Check out these sector highlights, screened for billionaire investors, high yield, and recent insider trading.

U.S. Asset Management Sector

Highlight: Ares Capital Corporation (ARCC)

The share price is currently around $17.57 or 5.9% off the 52-week high of $18.67. Its yield is 8.60%.

Up 1% over 12 months, Ares Capital Corporation has a market cap of $4.73 billion and is traded at a P/E of 8.30.

Founded in 2004, Ares Capital Corporation is a closed-end, non-diversified management investment company that primarily invests in non-syndicated senior debt, mezzanine debt and non-control equity. The company invests in U.S. middle-market companies, defined as businesses with annual EBITDA between $10 million and $250 million.

Guru Action: Four gurus hold ARCC shares as of June 30, 2013, and there is recent insider buying.

As of Sept. 30, 2013, Scott Black holds 425,346 shares or 0.16% of shares outstanding. He increased his position by 0.4% in the third quarter of 2013, buying 1,711 shares at an average price of $17.51 per share, for a gain of 0.6%.

Across a five-year trading history, he averaged a gain of 7% on 428,571 shares bought at an average price of $16.52 per share. He gained 5% selling 3,225 shares at an average price of $16.84 per share.

Tracking share price, revenue and net income:

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Highlight: BlackRock Kelso Capital Corporation (BKCC)

The share price is currently $9.62 or 11.1% off the 52-week high of $10.82. Its yield is 10.80%.

Down 4% over 12 months, BlackRock Kelso Capital Corporation has a market cap of $713.5 million and is traded at a P/E of 12.50.

Incorporated in 2005, BlackRock Kelso Capital Corporation provides middle-market companies with flexible financing solutions, including senior and junior secured, unsecured and subordinated debt securities and loans, and equity securities. The company is organized as an externally-managed, non-diversified closed-end management investment company.

Guru Action: One guru holds BKCC shares as of June 30, 2013, and there is recent insider selling.

Jeremy Grantham is the sole guru stakeholder, holding 32,000 shares or 0.04% of shares outstanding. He reduced increased his position by 5.88% in the second quarter of 2013, selling 2,000 shares at an average price of $9.77, for a loss of 1.6%.

In five losing quarters, Jeremy Grantham averaged a loss of 4% on 34,000 shares bought at an average price of $10.05 per share. He also lost 2% selling 2,000 shares at an average price of $9.77 per share.

Tracking share price, revenue and net income:

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Highlight: Harris & Harris Group Inc. (TINY)

The TINY share price is currently $3.07 or 22.1% off the 52-week high of $3.94. The company does not pay a dividend.

Down 10% over 12 months, Harris & Harris Group Inc. has a market cap of $95.7 million and is traded at a P/B of 0.70.

Incorporated in 1981, Harris & Harris Group Inc. is an early-stage venture capitalist investing in transformative nanotechnology companies. Its portfolio is comprised of companies in the life science, energy and electronics sectors.

Guru Action: Chuck Royce is the sole guru shareholder, as of June 30, 2013, and there is recent insider buying.

Chuck Royce currently holds 1,293,086 shares or 4.15% of shares outstanding. Royce increased his position by 5.9% in the second quarter of 2013, buying 72,084 shares at an average price of $3.27 per share, for a loss of 6.1%.

Royce’s five-year trading history shows all losing quarters. He averaged a loss of 26% on 1,421,586 shares bought at an average price of $4.15 per share. He also lost 41% selling 128,500 shares at an average price of $5.23 per share.

Tracking share price, revenue and net income:

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.3/5 (4 votes)

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