IB Net Payout Yields Model

Invest In The Surging Buybacks Of American Capital

Another quarter and another major buyback by American Capital, Ltd (ACAS). The company announced it has now repurchased 61.4M shares since shifting from paying dividends back in Q3 2011. The total buyback has amounted to $623M over the last 7 quarters at an average discount to a continuously soaring NAV of nearly 40%. Nonetheless, the stock continues to trade at a substantial discount even after demonstrating to the market every quarter that it has the financial ability to spend that much cash.

American Capital is a private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages $18.6 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $117 billion of total assets under management (including levered assets).

Read the full article at Seeking Alpha.

Disclosure: Long ACAS. Please review the disclaimer page for more details. 


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