Performance – March 2023

SSI tracking portfolio is down -3.9% in March 2023. A detailed performance breakdown is provided below.

Summary of SSI activity during the month:

  • Portfolio Ideas – 2 Portfolio ideas were added and 1 was closed.
  • Quick Pitches – 11 new pitches were covered in our SSI weekly newsletter.

Below you will find a more detailed breakdown of tracking portfolio returns by individual names as well as elaborations on names exited during the month.

 

TRACKING PORTFOLIO -3.9% IN MARCH AND +658% SINCE 2017

Disclaimer: These are not actual trading results. Tracking Portfolio is only an information tool to indicate the aggregate performance of special situation investments published on this website. See full disclaimer here.

The chart below depicts the returns of SSI Tracking Portfolio since the start of 2017.

ssi performance march 1

 

PERFORMANCE SPLIT MARCH 2023

The graph below details the individual MoM performance of all SSI Portfolio ideas that were active during the month of March 2023.

ssi splits march

 

PORTFOLIO IDEAS CLOSED IN MARCH 2023
First Eagle Alternative Capital BDC (FCRD) +8% In 4 Months
This was a merger of two BDCs. Crescent Capital (CCAP) was acquiring its peer First Eagle Alternative Capital in a NAV for NAV merger with an additional cash portion added by the buyer’s external manager. The consideration was 0.2063 CCAP shares + $1.89 in cash with plenty of cheap borrow available for hedging. The spread stood at 14%. FCRD shareholder approval was very likely as the total merger consideration came at a minimal discount to NAV. FCRD’s external manager, which owned 17%, and the second largest shareholder (7%) were supporting the transaction. CCAP seemed like a motivated strategic buyer and was unlikely to walk away. The spread likely existed due to a combination of small transaction size and some NAV volatility risk that could have affected the merger consideration. The merger closed promptly resulting in an 8% gain over 4 months. The overall return ended up below the 14% initial spread due to higher-than-expected transaction expenses as well as volatility in FCRD’s NAV.

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