5 Stocks to Buy According to James Morrow’s Callodine Capital Management

1. Barings BDC, Inc. (NYSE:BBDC)

Callodine Capital Management’s Stake Value: $18,505,000
Percentage of Callodine Capital Management’s 13F Portfolio: 5.48%
Number of Hedge Fund Holders: 11

Barings BDC, Inc. (NYSE:BBDC) is a specialist financing firm in the United States. Its main business is providing specialized finance to lower middle-market companies. It makes investments in businesses with an EBITDA between $10 million and $75 million that private equity sponsors often support.

Robert Dodd, a Raymond James analyst, downgraded Barings BDC, Inc. (NYSE:BBDC) on August 11 from ‘Strong Buy’ to ‘Outperform’ with an $11.50 price objective, down from $12.50. Dodd stated in a research note that the low NII rate sensitivity no longer justified the previous rating, despite his belief that the company’s unusual income streams offered it a long-term advantage over more typical BDCs.

11 out of the 895 hedge funds held stakes in Barings BDC, Inc. (NYSE:BBDC) in the second quarter of 2022, worth $43.89 million, compared to the same number of funds in the preceding quarter, holding stakes in Barings BDC, Inc. (NYSE:BBDC) totaling $47.55 million.

The most significant stake in Barings BDC, Inc. (NYSE:BBDC) is held by James Morrow’s Callodine Capital Management. Callodine Capital Management boosted its Barings BDC, Inc. (NYSE:BBDC) position by 83% or 900,189 shares during Q2. The hedge fund held 1.99 million shares worth $18.51 million as of June 30. Representing 5.48% of the fund’s 13F portfolio, Barings BDC, Inc. (NYSE:BBDC) was Callodine Capital Management’s top stock pick.

You can also take a peek at 10 Stocks to Buy According to Richard Scott Greeder’s Broad Bay Capital and 10 Stocks to Buy According to Bulldog Investors.

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