This month's purchase recommendation provides customized lending to companies with limited access to public or major bank-loan markets. Its $1.4 billion in investments are spread across 115 companies from a wide range of industries, producing a diversified portfolio. As a business development corporation (“BDC”), it does not pay corporate taxes, similar to a REIT, as long as it pays out most of its income to shareholders.
Over the past few months, we’ve seen an increase in the number of companies outside the United States that have shown up on our screens as undergoing meaningful change. We also thought it was interesting to look outside the U.S. because international markets (measured by the MSCI EAFE index) have underperformed U.S. stocks (measured by the S&P 500 index) so far this year.
Participating in some of the savviest investment funds often requires a minimum investment of $5 million or more, a commitment to tie up one’s money for years and a tolerance for less than full disclosure about the fund’s holdings. These funds are essentially out of reach to all but a few large investors. However, some funds offer alternative ways to participate, available to investors in the form of publicly-traded equities. Listed below are six stocks that can provide access to some of the smartest fund managers, in several cases at meaningful discounts to the underlying NAV.
Recently I was asked how my investing perspective changed over the 32 years of publishing The Turnaround Letter. It's a fascinating question because change is constant, and often beneficial (although that's not a given) in the business world. If change is the norm, can investing principles stay constant? I firmly believe that they can.
EV/EBITDA: What Is It & Why Are We Using It More?
In reading recent editions of The Turnaround Letter, you have probably noticed that we are increasingly using EV/EBITDA as a valuation measure, rather than the better-known price/earnings multiple. We thought it might be useful to describe this measure and why we like it.
This Forbeswrite-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.
George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."