Is it a Smart Decision to Invest in Logan Ridge Finance Corporation (LRFC)?

Clark Street Value, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. An annual portfolio return of 74.99% was recorded by the fund for the year 2021, versus 28.71% for the S&P 500, and an IRR since the inception of 29.12%.  over the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Clark Street Value, in its Q4 2021 investor letter, mentioned Logan Ridge Finance Corporation (NASDAQ: LRFC) and discussed its stance on the firm. Logan Ridge Finance Corporation is a United States-based closed-end management investment company with a $66.8 million market capitalization. LRFC delivered a 7.31% return since the beginning of the year, while its 12-month returns are up by 67.25%. The stock closed at $24.67 per share on January 13, 2022.

Here is what Clark Street Value has to say about Logan Ridge Finance Corporation in its Q4 2021 investor letter:

Logan Ridge Finance Corporation (LRFC) is similar to PFX in that it is a BDC that doesn’t pay a dividend (I believe they’re the only two credit BDCs that don’t pay dividends).  BDCs aren’t included in indices and if it doesn’t pay a dividend, it is hard to attract regular yield-focused retail investors, so its limited to a small subset of investors willing to play in these ponds.  LRFC was recently taken over by BC Partners, they’re in the process of repositioning the portfolio to generate yield and restore the dividend, that’ll likely happen in the first half of 2022 and I expect the discount to NAV to decrease (trades for 58% of NAV today).”

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Our calculations show that Logan Ridge Finance Corporation (NASDAQ: LRFC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Logan Ridge Finance Corporation (NASDAQ: LRFC) delivered a -0.96% return in the past 3 months.

You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.