Bain Capital Specialty Finance: Deep Discount, Strong Returns
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Arbitrage TraderInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryBain Capital Specialty Finance trades at a near 27% discount to NAV, well below its 5-year average of 13.6%.BCSF's portfolio is diversified across 203 holdings, with a gross asset yield of 10.26% and a non-leverage expense ratio of 2.85%.BCSF outperforms peers with a 5-year total NAV return of 10.41% versus the group’s 7.18% and maintains a BBB- Fitch credit rating.Discount-adjusted ROE for BCSF is 12.71%, making the stock more attractive than leveraged OTC BDC bonds even after accounting for costs and losses.Looking for a portfolio of ideas like this one? Members of Trade With Beta get exclusive access to our subscriber-only portfolios. Learn More »MoMo Productions/DigitalVision via Getty Images Bain Capital Specialty Finance, Inc. (BCSF), is a BDC managed by an affiliate of Bain Capital, one of the world's leading private invеstment firms. With а diversified pоrtfolio of ovеr 200 holdings across multiple industriеs andThis article was written byArbitrage Trader15.73K FollowersFollowArbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic. Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.