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American Capital, Ltd. Message Board

  • givethanksineverything givethanksineverything Nov 1, 2007 12:14 PM Flag

    When I want to feel good about ACAS


    I simply go to the ACAS website and I study the companies that are part of their portfolio, both on a loan and equity basis.

    The equity positions are indeed companies I would want to invest in ... but can't because they are not publically traded.................. and that is where I begin to feel great!

    These companies are NOW publically traded through an equity position in ACAS!!!!!!!!!!!

    Given the diversity of the companies in which ACAS has an equity position, ACAS is almost like a small mutual fund with a DIVIDEND yield far exceeding virtually all mutual funds.

    Sure, there will be a few bad loans, and a few bad equity positions. Study any mutual fund and you will find some bad choices, at least for the moment. However, ACAS has a tremendous track record, as evidenced by their DIVIDEND yield AND by those lenders who have studied ACAS and chosen to lend them large amounds, some of which is UNSECURED.

    At nearly a 10 PERCENT YIELD ACAS stock, based on next years payouts, I cannot imagine a more diversified, higher yielding investment on the market today.

    Hit the recommend button if you agree!!!

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    • Not really buying the argument that they're like a mutual fund and both have similar "bad" choices.

      IMO, ACAS is similar to a star poker player that has all the tools/moves in their toolbox. They do venture, private equity, buyouts, and offer all of the more sophisitcated debt and equity instruments/products/services.

      I'm long on ACAS, and even though I know this company & some employees, my two big concerns are:
      1) I don't know a single person who is a) happy at ACAS and b) thinks highly of thier mgmt. This point is based on ~20 people.
      2) I see them making lots of investments and being involved in a lot of deals, but this # is significantly higher than thier exits. In the long run, I hope thier portfolio-theory approach and massive vault yields a few monsters.

      • 2 Replies to bd_jwt
      • >I don't know a single person who is (a) happy at ACAS and (b) thinks highly of thier mgmt.<

        When I first invested in ACAS 9 years ago, I think they had something like 12 people. Now they have what, 500 people or something like that. Growth always causes a lot of problems. The company I work for has gone from 20 employees when I joined 10 years ago to about 200 now, and I hear a lot of griping and see a lot of disfunctional behavior, but it is mostly because things have to be reorganized as the company grows, responsibilities change, and people get on each other's nerves. Yeah I liked the family aspect when I joined and now the company is, well, just a company where I don't know most of the people anymore. So are your friends gripes about ACAS any more than that?

    • Great post!

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