American Capital Just Can't Resist Buying Cheap Stock
At the end of Q4, American Capital (ACAS) released quarterly buyback numbers. In what shouldn't be a huge surprise to investors, American Capital again repurchased a substantial amount of stock significantly below net asset value, or NAV. Based on the stock currently sitting in the $15 range, investors should expect even more buybacks going forward.
American Capital is a publicly traded private equity firm and global asset manager that manages $20 billion worth of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers. Through an affiliate, American Capital manages publicly traded American Capital Agency Corp. (AGNC) with approximately $10 billion of net book value and American Capital Mortgage Investment (MTGE) with approximately $1 billion of net book value.
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