Great trade : MCC +10% (9/16)

Note: Medley filed for bankruptcy in March 2021 and its shares were delisted from the New York Stock Exchange in July.

• 9/4/16:  #1   $7.00
• 9/23/16:  +10%

 

Medley Management, for all intents and purposes, was  really just twin brothers Seth and Brook Taube.

BDCs are essentially mutual funds that lend money to small and medium-size businesses. 

They have exploded in popularity along with the rise of private credit in the past decade. Both BDCs and mutual funds are governed by the Securities and Exchange Commission’s Investment Company Act — written nearly 80 years ago, in 1940. Medley Management makes money by charging incentive fees based on how good it is at picking investments. It also rakes in cash through an annual management fee that is charged whether performance is exceptional or horrible.

Medley’s roots go back to 2005. That’s when Brook and Seth, both of whom have BAs from Harvard University, teamed up with Richard Medley to launch a credit hedge fund with a socially responsible focus. A former adviser to George Soros, Richard Medley left about a year after the founding (he died in 2011), and the firm dropped the impact part of its mandate. During the financial crisis, Medley Management prevented investors from withdrawing their money as it struggled to sell illiquid assets. The firm would later transfer six of the hedge fund’s best-performing assets to what’s now Medley Capital. The twins took the BDC public in 2011.