Prospect Capital Plans to Raise Capital through Spin-Offs
Prospect Capital (PSEC) is targeting spin-offs in order to raise capital to be redeployed in asset classes yielding higher returns.
Prospect Capital’s (PSEC) stock has declined by ~13% over the past six months and ~27% over the past 12 months.
Prospect Capital (PSEC) continues to make use of leverage to generate higher returns. The company’s 4Q15 debt-to-equity ratio increased to 77.6%.
Hedge Funds Bagged 24.4% Return from Investing in Latin America
Latin America had reaped a 24.4% return for the year up to July 2016 for hedge funds invested in the region.
Hedge funds assets invested in emerging markets rose by $4.7 billion in the second quarter to end 2Q16 at a total of $189.8 billion.
According to a 13F filing, Third Point lowered its position in the Dow Chemical Company (DOW).
Blackstone’s Shareholder Rewards, Realizations Could Rise in 2017
Blackstone Group (BX) stock has risen 16% over the past three months on improved performance across its subsegments, high growth in 4Q16, and rising holdings valuations.
In February 2017, 11 out of the 14 analysts covering BX rated it as a “buy” or a “strong buy.” Another three analysts rated it as a “hold.”
Blackstone’s (BX) valuation stands at 9.5x on a one-year forward earnings basis, while its peers are trading at an average of 9.1x.
Post Properties and Mid-America: Exceptions in the MAE Clause
Pretty much anything that has a material adverse effect on a company will be considered an MAE, although there are exceptions to that rule.
We’ll look at the MAE clause of the Post Properties and Mid-America Apartment merger agreement. We’ll see how Mid-America could walk away from the deal.
In the merger deal between Post Properties and Mid-America, the MAE clause lays out the circumstances under which Mid-America can terminate the merger.