Summary
- FDUS has outperformed most BDCs when it comes to NAV per share growth, but declined during the recent quarter with realized losses mostly due to the exits of two investments.
- FDUS is for higher risk investors (looking for higher yields) and does not fit my personal risk profile due to its portfolio of mostly second-lien/subordinated debt and equity investments.
- However, these investments are responsible for most of the historical realized gains, NAV per share growth, and special dividends.
- The stock is likely under-priced and trading 9% below book value, giving it a current regular dividend yield of 10.6% (before specials).
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