5 Small and Mid-cap Stocks Added to Silver Capital’s Portfolio in Q1

Main Street Capital Corporation (NYSE:MAIN)

 – Shares Owned by Silver Capital Management LLC (as of March 31): 26,890

 – Value of Holding (as of March 31): $844,000

In addition to Hercules Capital, Main Street Capital Corporation (NYSE:MAIN) is another new addition to Silver Capital’s portfolio that sports a high annual dividend yield, of nearly 7%. Shares of the financing company are doing relatively well this year, trading up by 8.5% year-to-date. However, since they are trading at a considerable premium to the company’s net asset value (NAV) at a time when most BDCs are trading at a 25% discount to their NAV, a few analysts feel that the shares of the company have limited upside. Main Street Capital Corporation (NYSE:MAIN) is reported its first quarter financial results on May 5, delivering net investment income of $0.54 per share, which was in-line with estimates, while its total investment income came in at $42 million, missing estimates by nearly $1.00 million. Analysts at National Securities reiterated their ‘Neutral’ rating on the stock on May 9, while lowering their price target on it to $33 from $34. Billionaire Ken Griffin‘s Citadel Investment Group slashed its stake in Main Street Capital Corporation by 68% to 19,356 shares during the first quarter.

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BGC Partners, Inc. (NASDAQ:BGCP)

 – Shares Owned by Silver Capital Management LLC (as of March 31): 104,620

 – Value of Holding (as of March 31): $946,000

Moving on, shares of brokerage company BGC Partners, Inc. (NASDAQ:BGCP) have had a volatile year and are currently trading down by slightly more than 10% year-to-date. One of the reasons for the decline is likely the stock’s trailing P/E of 19.08, which is considerably above the average trailing P/E of nearly 15.00 for the brokerage industry. BGC Partners, Inc. (NASDAQ:BGCP) reported its first quarter earnings on April 27, reporting in-line EPS of $0.18, but missing revenue estimates of $664.95 million by just under $5.00 million. In February, the company opened a new unsecured agreement for revolving loans of up to $150 million, with the option to boost it to $200 million. Murray Stahl‘s Horizon Asset Management reduced its stake in BGC Partners by 9% to 211,724 shares during the first quarter.

Fidelity National Financial, Inc. (NYSE:FNF)

 – Shares Owned by Silver Capital Management LLC (as of March 31): 27,932

 – Value of Holding (as of March 31): $948,000

Fidelity National Financial, Inc. (NYSE:FNF) was the second-largest equity stake initiated by Silver Capital during the first quarter and the largest when it comes solely to small or mid-cap stocks. Shares of the company have been drifting lower since August of last year and currently trade down by 3.2% year-to-date, which has pushed the annual dividend yield of the stock to 2.5%. Fidelity National Financial, Inc. (NYSE:FNF)’s stock currently sports an average rating of ‘Overweight’ from the four prominent brokerage firms and analysts who track it. Billionaire Ken Fisher‘s Fisher Asset Management didn’t make any changes to its stake in Fidelity National during the first quarter, as it continued to hold 26,064 shares of the company at the end of that period.

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Disclosure: None