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In this article, we examine the merits of a former business Development Company ((BDC)) that converted into a closed-end fund to invest in micro-cap companies using “constructive activism.”
We have always thought that the utilizing a closed-end fund structure to invest in small/illiquid stocks would provide a better chance for generating alpha than an open-end mutual fund. The closed-end fund structure eliminates the problem of investor money flows arriving/leaving at the wrong time. In essence, the closed-end fund structure