Top Stock Picks Of Silver Capital Management

Silver Capital held 269,817 shares of AdCare Health Systems, Inc. (NYSEMKT:ADK) valued at $934,000 at the end of the second quarter, slashing the position by 28% during the quarter. The position formed 6.48% of the fund’s total portfolio holdings, dropping its former top pick into second place. AdCare Health Systems owns, operates, and manages skilled nursing facilities and assisted-living facilities. The company’s facilities provide a range of healthcare services to patients and residents, including skilled nursing and assisted-living services, social services, various therapy services, and other rehabilitative and healthcare services for both long-term residents and short-stay patients. With a market cap of $74.12 million, the company has substantially transitioned from its legacy business model into a healthcare property leasing and holding company. The new business model should provide a more consistent cash flow and higher profitability to allow AdCare Health Systems, Inc. (NYSEMKT:ADK) to pay off its interest. First quarter reported EPS was $0.22 per share and analysts expect that the company will post $0.25 EPS for the current fiscal year. The stock performance year-to-date stands at a loss of 6.7%. Paul Orlin and Alex Porter’s Amici Capital held 520,000 shares as of June 30, adding 170,000 shares to its portfolio during the second quarter.

Silver Capital Management acquired a new position in NexPoint Residential Trust Inc (NYSE:NXRT), purchasing 69,437 shares with a value of $933,000 at the end of the second quarter. This amounted to 6.47% of the fund’s total portfolio value. The company is a US-based real estate investment trust (REIT). Its business objective is to acquire multi-family properties in markets with job growth and household formation fundamentals in the Southeastern United States and Texas. Furthermore, it seeks to acquire assets below replacement costs and own assets which provide lifestyle amenities and upgraded living spaces to low- and moderate-income renters. The $273.56 million market cap company is the result of a spin-off completed by NexPoint Credit Strategies Fund (NYSE:NHF) on March 31. The real estate investment trust acquired an apartment community located in West Palm Beach, Florida, for a purchase price of $21 million on April 20. The property, known as Bayberry, is believed to be an excellent addition to NexPoint Residential Trust Inc (NYSE:NXRT)’s portfolio. Another shareholder of the company is James Dondero‘s Highland Capital Management, which holds 2.64 million shares as of June 30.

Disclosure: None