ARDC (Ares Dynamic Credit Allocation Fund) Moat Score: 4/10 (As of Jun. 29, 2026)


ARDC Ares Dynamic Credit Allocation Fund Inc ARDC
43 GF Score
Price $12.52
GF Value $8.66
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Ares Dynamic Credit Allocation Fund Moat Score?

Ares Dynamic Credit Allocation Fund ARDC -0.24% 43 Moat Score is 4 as of Jun. 29, 2026. GuruFocus rates ARDC with a GF Score™ of 43/100 and a GF Value™ of $8.66 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,695 Asset Management companies, Ares Dynamic Credit Allocation Fund ranks better than 95.52% on this metric.

Ares Dynamic Credit Allocation Fund has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Ares Dynamic Credit Allocation Fund has Narrow Moat: Ares Dynamic Credit Allocation Fund Inc has a discernible but modest moat due to its expertise in credit allocation and strong brand reputation. However, the fund's competitive advantages are limited by the competitive nature of the financial services industry.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Ares Dynamic Credit Allocation Fund might have Narrow Moat - Discernible but modest moat.

Ares Dynamic Credit Allocation Fund  (NYSE:ARDC) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Ares Dynamic Credit Allocation Fund Moat Score Related Terms

ARDC vs KWY, HRZN, KF: Moat Score Comparison

For the Asset Management subindustry, Ares Dynamic Credit Allocation Fund's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ares Dynamic Credit Allocation Fund Moat Score vs Asset Management Industry

For the Asset Management industry and Financial Services sector, Ares Dynamic Credit Allocation Fund's Moat Score distribution charts can be found below:

* The bar in red indicates where Ares Dynamic Credit Allocation Fund's Moat Score falls into.


ARDC
43GF Score
Ares Dynamic Credit Allocation Fund Inc ARDC
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
Ares Dynamic Credit Allocation Fund (ARDC) has a Moat Score of 4 as of Jun. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Ares Dynamic Credit Allocation Fund ranks #76 out of 1695 companies in the Asset Management industry, placing it in the top 4.5%.
Is Ares Dynamic Credit Allocation Fund's Moat Score too high?
Ares Dynamic Credit Allocation Fund's current Moat Score is 4. Based on the distribution chart, Ares Dynamic Credit Allocation Fund ranks #76 out of 1695 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Ares Dynamic Credit Allocation Fund has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ares Dynamic Credit Allocation Fund's Moat Score compare to KWY and HRZN?
According to the Asset Management industry distribution chart, Ares Dynamic Credit Allocation Fund ranks #76 out of 1695 companies for Moat Score. This places Ares Dynamic Credit Allocation Fund in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Asset Management company?
A good Moat Score depends on the Asset Management industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Ares Dynamic Credit Allocation Fund's current Moat Score is 4. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Dynamic Credit Allocation Fund stock overvalued right now?
Based on GuruFocus' analysis, Ares Dynamic Credit Allocation Fund (ARDC) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.66, compared to a current price of $12.52 — trading 44.6% above its estimated fair value. The current Moat Score is 4. Ares Dynamic Credit Allocation Fund's overall GF Score™ is 43/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Ares Dynamic Credit Allocation Fund (ARDC), the current Moat Score is 4 as of Jun. 29, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ares Dynamic Credit Allocation Fund (ARDC) Overvalued in 2026?

Based on GuruFocus' analysis, Ares Dynamic Credit Allocation Fund stock appears to be overvalued. The current stock price of $12.52 is trading 44.6% above its estimated GF Value™ of $8.66. GuruFocus considers Ares Dynamic Credit Allocation Fund to be Significantly Overvalued.

Key valuation signals for ARDC:

  • Moat Score: 4
  • GF Value™: $8.66 vs. price of $12.52 (44.6% above fair value)
  • GF Score™: 43/100 with 8 warning signs

No single metric tells the full story. See the ARDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Ares Dynamic Credit Allocation Fund Business Description

Address 1800 Avenue of the Stars, Suite 1400, Los Angeles, CA, USA, 90067
Ares Dynamic Credit Allocation Fund Inc is a closed-end, diversified, management investment company. The Fund's investment objective is to seek an attractive risk adjusted level of total return, through current income and, secondarily, through capital appreciation. The Fund invests in a broad, dynamically managed portfolio of (i) senior secured loans, (ii) corporate bonds, (iii) other fixed-income instruments, and (iv) securities issued by entities commonly referred to as collateralized loan obligations and other asset-backed securities.
43GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$12.52
Price
$8.66
GF Value