Silver Capital Management Trims Exposure to Its Top Picks

#4 Ocean Shore Holding Co (NASDAQ:OSHC)

– Shares Owned by Silver Capital Management LLC (as of March 31): 63,681

– Value of Holding (as of March 31): $1.12 million

Silver Capital Management LLC reduced its stake in bank holding company Ocean Shore Holding Co (NASDAQ:OSHC) by 13% during the first quarter. The fund initiated a stake in the company during the third quarter of 2015 and since the end of that period Ocean Shore Holding Co (NASDAQ:OSHC)’s stock has appreciated by almost 10%. Most analysts who track the stock are bullish on it, including analysts at Sandler O’Neill, who on January 7, upgraded the stock to ‘Buy’ from ‘Hold’. On April 27, Ocean Shore Holding Co reported its fiscal 2016 first-quarter numbers, declaring EPS of $0.28 on revenue of $8.28 million for the quarter, versus analysts’ expectations of EPS of $0.27 on revenue of $8.37 million. The company currently pays a quarterly dividend of $0.06 per share, which translates into an annual dividend yield of 1.35%. Hedge funds that initiated a stake in Ocean Shore Holding Co during the fourth quarter included Brian Gaines‘ Springhouse Capital Management, which bought 90,498 shares of the company.

#3 HCA Holdings Inc (NYSE:HCA)

– Shares Owned by Silver Capital Management LLC (as of March 31): 15,415

– Value of Holding (as of March 31): $1.2 million

Moving on, HCA Holdings Inc (NYSE:HCA)’s stock fell heavily during the second-half of 2015, losing over one-fourth of its value during that time. However, this year it has managed to recoup a large amount of those losses and has gained 15% year-to-date. During the first quarter, Silver Capital Management LLC reduced its stake in HCA Holdings Inc (NYSE:HCA) by 30%. Another fund that reduced its stake in the company during that time was Ray Carroll‘s Breton Hill Capital, which brought its holding down by 15% to 12,035 shares. Last month, HCA Holdings was featured in a list released by Morgan Stanley, which included 30 stocks that can outperform the broader market over the next three years. The healthcare services company posted EPS of $1.71 and revenue of $10.26 billion, beating the consensus estimates of EPS of $1.49 on revenue of $10.24 billion.

#2 Macquarie Infrastructure Corp (NYSE:MIC)

– Shares Owned by Silver Capital Management LLC (as of March 31): 18,650

– Value of Holding (as of March 31): $1.26 million

Macquarie Infrastructure Corp (NYSE:MIC) was Silver Capital Management LLC’ top stock pick while entering 2016. However, the company lost that spot at the end of first quarter owing largely to the fund reducing its holding in it by 40% during the first three months of the year. During the same time, Stephen J. Errico‘s Locust Wood Capital Advisers sold off its entire stake in the company. Shares of Macquarie Infrastructure Corp (NYSE:MIC) have lost almost 19% in the past one year and  the company currently pays a quarterly dividend of $1.15 per share, which translates into an attractive dividend yield of 6.50%. Macquarie Infrastructure Corp posted worse-than-expected first-quarter results, which included EPS of $0.28 and revenue of $396.40 million, compared to EPS of $0.47 on revenue of $424.67 million that analysts had projected. On April 12, analysts at Barclays reiterated their ‘Buy’ rating on the stock.

#1 Triangle Capital Corporation (NYSE:TCAP)

– Shares Owned by Silver Capital Management LLC (as of March 31): 80,048

– Value of Holding (as of March 31): $1.65 million

Despite Silver Capital Management LLC reducing its stake in Triangle Capital Corporation (NYSE:TCAP) by 4% during the first quarter, the company jumped two spots during that period and ended up becoming the fund’s top stock pick going into the second quarter. Triangle Capital Corporation (NYSE:TCAP)’s stock has lost 5% so far this year, and is trading significantly down from the $30 levels registered in 2013. The specialty finance company is one of the best dividend paying stock in the small-cap universe currently with its annual dividend yield hovering around 14%. Earlier this month, Jefferies Group upgraded Triangle Capital Corporation’s stock to ‘Buy’ from ‘Hold’, while Janney Montgomery Scott upgraded it to ‘Buy’ from ‘Neutral’. On the other hand, Raymond James downgraded the stock to ‘Underperform’ from ‘Outperform’. All analysts currently have a consensus price target on Triangle Capital of $23.17, which implies an upside potential of over 27%.

Disclosure: None