Saratoga Investment Thesis
Saratoga Investment Corp. (SAR) reported a net asset value ((NAV)) that does not reflect the economic reality of its portfolio companies. Using high-yield indexes and small-cap equity indexes as a gauge for SAR's equity and debt assets points to a $32 million depreciation in NAV. For example, applying the corresponding change in iShares Russell 2000 ETF (IWM) and iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) to SAR's debt and equity investments yields a NAV of $24 per share, compared to a reported NAV of $27 per share. Still, the new