SAR - Saratoga Investment Corp: The Risks Are Still Too High

2024-05-27 11:47:36 ET

Summary

• Earlier this year, I wrote a relatively bearish article on Saratoga Investment Corp (SAR).
• The presence of excessive leverage was the key reason to avoid SAR.
• Now, SAR has circulated its Q4, 2024 earnings deck, which does not embody the necessary data points to warrant a sufficient basis for going long.
• In this article, I explain why I still consider SAR a suboptimal BDC investment after the most recent earnings release.

March this year, I wrote an article on Saratoga Investment Corp ( SAR ) assigning a neutral or hold rating despite some very enticing characteristics that SAR embodied (e.g., diversified portfolio, focus on cash flowing businesses, and most of the exposure sitting at first lien level)....

For further details see: