FSCO - FS Credit Opportunities Corp

Closing the position at $7.00 with 27.3% profit.

Now we are closing our position sooner than expected. At a price of $7 per share, FSCO in our opinion is overpriced so we exit the position. 

When we bought FSCO at the $5.55 on this crazy Monday 7th April it was oversold at a 23% discount of NAV. Today most of its NAV recovered and price retraced to its peak values. As you can see on the picture below, current Premium / discount values are almost to its 52-week-high ratio.

At this price, the fund's yield is 11% compared to 13.90% yield when we bought it. Most of the metrics we are monitoring show that the fund is overpriced. We are closing it at $7.00 and taking $1.45 capital gain and $0,065 in dividends. Total gain of $1.51 per share or 27.3% profit for less than a month is probably the best case scenario for a bond holding CEF.

We continue to seek for bargain investments.