In this Patreon requested video, we’re going to take a look at some recent articles that’ve come out criticizing Ares Capital. Over the past month or so, there’s all of a sudden been a handful of articles on these websites, like Seeking Alpha and The Monthly Fool, that are either bashing this company or have been claiming they’re going to significantly underperform in the year ahead. And I can somewhat understand why some people are concerned because I’m assuming this has to do with the Fed announcing recently that they anticipate cutting interest rates this year. And in some ways, we don’t fully know what to expect from that, but there are some assumptions we can make based upon past performance and just what exactly business development companies are designed to do in the first place.

If you’re watching this video, I’m going to assume you’re either currently an investor in Ares or you hold some other BDCs. Ares Capital is one of the oldest business development companies out there, and they’re also the largest publicly traded BDC in the world. As of last quarter, they reported an investment portfolio of roughly 21.9 billion dollars, which is far bigger than the second largest BDC, which is FS KKR Capital. They’ve been publicly listed since 2004, and I’d honestly say they’re probably considered to be the gold standard in this sector.

  / dividendbull  

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