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Re: Help...BIZD -- Acquired Fund Fees...??I'm NO expert with BDCs - thats for sure - but I thought I'd share a few thoughts about my own history with the sector. I cannot speak to all the expenses nor the expense ratios and other metrics but understand that is how money is made both by the individual BDCs and the ETF management, their fund families etc.etc. I am not in love with this sector much less all these more complex fund vehicles but I think its ok to dabble with a small % of the portfolio in these considering the possibility of an extended low rate environment which is looking less likely to remain that much more extended in which case I believe the whole sector will suffer somewhat but as long as banks make lending more difficult than in the past, yet the economy continues to grow demanding capital investments, there is certainly a niche available for BDCs to thrive. I own personally MAIN & PNNT. MAIN has done well. PNNT has broken even but paid me well to be invested. I've owned and sold off TCAP after a nice gain and FSC at a loss after it cut its distribution the first time. This sector is probably to risky and I consider myself lucky with how well I've done which isn't really all that great but its certainly been a net positive and a double with MAIN. I looked at BIZD but opted instead to buy BDCL as my speculative play in the sector (as I like the leveraged kick and I am comfortable with the sponsoring bank). BDCL has lost value but the income it provides has more than made up for it - on balance I cannot really vouch for BDCL with any confidence but perhaps its an ok place to park a tiny but diversified spec play on the sector with lots of income to boot while the sector is out of favor it might prove cheap - but again that might again be for good reason considering interest rate hikes expected this year and that many BDCs seem to be reducing payouts. Industry-wide, I think right now only the energy sector provides any value. FACTOIDS, who should always be listened to carefully, likes the Transports over the Groceries & Staple Stocks. Most other sectors seem to have run too far ahead of themselves and seem somewhat expensive but not ridiculously so. BOL, BEHOLD |
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Msg # | Subject | Author | Recs | Date Posted |
1865 | Re: Help...BIZD -- Acquired Fund Fees...?? | redhawk | 1 | 2/15/2015 8:07:00 PM |