Observations and Sample of Recent Trades: APLE, BKLN, TPVG, VNOPRM, VWO

Economy: 

Consumer incomes and spending surge in October, but inflation remains under control - MarketWatch

Personal Income and Outlays, October 2018 | U.S. Bureau of Economic Analysis (BEA)(a good report) 

Fed warns that 'particularly large' plunge in asset prices is possible if risks materialize

Jobless claims surge to 6-month high of 234,000 - MarketWatch

Trump tariffs blamed for slowdown at new Volvo plant in South Carolina

Fed minutes: Further hike 'warranted soon,' debate opened on pause | Reuters (minutes are from last month's meeting) I hike of .25% in the FF rate is expected when the FED meets in a few days)  

China November factory growth stalls as orders shrink | Reuters

The Atlanta Fed's GDP forecast now stands at +2.6% for the 4th quarter. GDPNow - Federal Reserve Bank of Atlanta The New York FED's forecast is currently at +2.5%. Nowcasting Report - FEDERAL RESERVE BANK of NEW YORK

Kudlow says progress in US-China trade will happen 'very quickly' When pressed, Kudlow added the following after his happy talk: “The history here with China promises is not very good. And we know that." 

U.S. expects immediate action from China on trade commitments | Reuters. Mnuchin claimed that China had committed to buy $1.2 trillion in U.S. products. China made more than $1.2 trillion trade commitments -Mnuchin That sounds like B.S. to me. China probably made vague offers that were conditional on "market conditions" and other caveats that rendered all or most of them meaningless or close to it. 

So what is the message Donald is trying to convey with the following tweets, published on Tuesday, after Kudlow and Mnuchin assured investors on Monday that China has finally seen the light and had made all kinds of commitments to purchase American products:

The 90 day true period started on 12/1/18. 

For two days, China did not respond to the U.S. version of what China agreed to do. Their Commerce Ministry issued last night a brief and positive comment that was vague on details. China confident it can clinch U.S. trade pact as Trump demands 'real deal' | Reuters I view that headline to be more optimistic than the text of the article. 

I am expecting a lowering of China's existing auto import tariffs for U.S. made automobiles which were raised to 40% in response to U.S. tariffs on China's exports. Trump’s car tariff deal with China is better for other countries - Vox; Trump's China car tariffs claim sows confusion - BBC News  

Whatever concessions China ends up implementing in the next 3 months will be taken back when and if negotiations break down again and Trump increases the tariff amount from 10% to 25%. 

This was made clear by China's Communist Party newspaper Global Times with this clear statement: “Reaching an agreement within three months is a spur to not only China, but also the US. If the two sides fail to reach a deal, all the White House promises will be invalid.”   

We shall see soon enough whether this happy talk was justified or just more B.S. from an administration that deserves an A+ in misleading the public. 

Here's what major Wall Street economists say about the trade truce

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Markets and Market Commentary: 

"In a longer range chart going back to 1962, there has never been a recession that wasn't preceded by an inversion of the yield curve." The 'yield curve' explained and how it became Wall Street's barometer

10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity

I discussed the yield inversion for part of the treasury curve yesterday in this comment. 

U.S. 5 Year Treasury Note- MarketWatch
U.S. 2 Year Treasury Note- MarketWatch
U.S. 3 Year Treasury Note-MarketWatch

Dollar drops as U.S. Treasury yield curve inversion sparks recession fears | Reuters (12/3/18 article) 

4 reasons why the 10-year Treasury yield has tumbled below 3%—again - MarketWatch

DJT-Dow Jones Transportation Average: -476.37 or -4.30%; Dow transports suffer biggest-ever point drop, led FedEx and UPS stock selloffs - MarketWatch

Bank stocks fall the most since June 2016, enter bear market (banks are reacting negatively to potential net interest margin compression caused by the flattening yield curve) 

The S & P 500 spent one day above its 50 and 200 day moving average using a one year YF chart: S&P 500 The 2,632 level is the next downside point which I view as important, since that index bounced off that level in both October and November. 

On a more positive note, the Asian markets last night were down far less than the U.S. major indexes. 

The Shanghai Composite Index was down just .61%. While the U.S. markets are closed today, stock futures are pointing to a positive open tomorrow. 

My small cap Canadian E & P stocks have been smashed in price over the past month. Canada's Alberta Province has required producers to cut production by 325,000 barrels per day ("BPD") until the excess oil in storage is drawn down. Thereafter, production will be cut by 95,000 BPD until the end of 2018 at the latest. Canada's Unprecedented Oil Cut Plan Boosts Crude, Stocks - Bloomberg Canada needs to come to grips with the fundamental problem of inadequate pipeline capacity which is creating a huge price discount for West Canadian Select Crude to the U.S. West Texas Intermediate Crude. 

Chart suggests a Santa Claus rally is not coming to Wall Street

Fed points to December rate hike but is worried about tariffs and debt

Facebook's Sheryl Sandberg ordered investigation into George Soros: report - MarketWatch

Australia's GDP weaker than expected in Q3 - MarketWatch 

There is growing evidence of an economic slowdown outside of the U.S.  

EU GDP: 

Eurostat.PDF (released 11/14/18; Germany had negative growth)

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Trump: 

Donald Trump Once Mocked The Same George H.W. Bush Quote He Used To Remember Him 

More Bad News for the Duck as the Noose Tightens: 

On the positive side for Don the Con, focusing on just Donald's potential crimes, he has surrounded himself with people in the past that are as unworthy of trust as Donald.  

Michael Cohen Pleads Guilty to Charge in Mueller Inquiry Related to Russia Business Deal (Cohen lied about his efforts during the 2016 Trump campaign to secure a Trump Tower deal in Moscow)

Michael Cohen Admits Talks for Trump Over Moscow Tower Occurred Well Into Campaign  

READ: Michael Cohen's plea agreement (Individual # 1 is Trump)

Trump says Michael Cohen "is lying" and "trying to get a reduced sentence" - CBS News But then Donald's lawyers say that Cohen and Trump agree on the conversations about the Moscow deal negotiations: Trump’s Recall of Moscow Deal Matches Cohen’s, President’s Lawyers Say It is hard to reconcile Donald's reaction to Cohen's plea deal with the representations made by his lawyers. 

The Trump Organization Planned To Give Vladimir Putin The $50 Million Penthouse In Trump Tower Moscow If true, Putin knew about it which is what the Russians would call kompromat. 

In addition to Cohen, a felon Felix Sater (Individual # 2) and a Russian intelligence officer (GPU), General Evgeny Shmykov were involved in the effort. How a Lawyer, a Felon and a Russian General Chased a Moscow Trump Tower Deal - The New York Times 

All of the foregoing information was never conveyed to the American people by Trump during his campaign, even though the information shows a potential conflict between Trump's business interests and the interests of the United States. Rather than disclose this material information during the campaign, Trump lied about his efforts. Trump Denies Business Dealings With Russia. His Former Lawyer Contradicts Him. - The New York Times   

Cohen believed Trump would pardon him, but then things changed 

After Manafort entered a plea deal, there was no reason for him to continue a joint defense strategy with Trump unless he had a reasonable belief that Trump would later pardon him given that cooperation. Mueller claims that Manafort lied repeatedly to investigators after signing that plea agreement. 

It is difficult to explain why a person would plead guilty to felonies, agree to cooperate in ongoing investigations by answering questions truthfully, and then lie. 

The prosecutors could then charge that person with perjury and seek the harshest sentence for the crimes that were subject to previous guilty pleas. 

One explanation is that Manafort had to lie in order to protect Trump and/or his family members, when telling the truth would certainly result in Trump withholding any pardon. 

If that is case, Manafort is a fool for trusting Donald to come through. 

Note that Donald has repeatedly called Manafort a good man and has not ruled out a pardon for him. Trump calls Manafort a 'good man' after convictions - YouTube; Trump on the latest news from the Paul Manafort trial: he’s a “good man”-Vox 

In TrumpWorld,  Manafort is a good man after pleading guilty to multiple felonies, provided of course he does not implicate Trump in any felonies.        

Rudy Giuliani Charged? Donald Trump's Lawyer May Face Scrutiny Over Dealings with Manafort Lawyers (This will be fact sensitive as to whether or not Giuliani crossed the line into obstruction of justice. Information is not now publicly available to arrive at any informed judgment, but the matter needs to be investigated, possibly by a grand jury)

Trump praises Roger Stone's 'guts,' slams Michael Cohen-CNN Trump praises those who toe his line. 

The Duck is moving close to witness tampering. Some lawyers would argue that he may have already crossed that line. 

Trump’s latest tweets cross clear lines, experts say: Obstruction of justice and witness tampering

Did President Trump just tamper with a federal witness? - Vox; 

Legal Experts Say Trump Just Committed Witness Tampering on Twitter 

There are a number of overt acts committed by Trump, which would probably be charged as criminal, when performed by an ordinary citizen.   
The tweets that provoked this discussion among legal experts were published last Monday: 

At a minimum, the tweets are highly inappropriate for a President but so have well over a thousand other Trump tweets. 

I would note that Roger Stone has not been contacted by Mueller's team and consequently he has not been "forced by a rogue and out of control prosecutor to make up lies and stories about President Trump". 

I suspect that Stone may be indicted for alleged perjury and possibly other federal crimes. 

Roger Stone built a 'dirty trickster' image. Robert Mueller might build a case on it; 

Documentary Reveals The 'Dirty Tricks' Of One Of Trump's Closest Political Advisers : NPR; 

The Dirty Trickster | The New Yorker; 

Adam Schiff says Roger Stone may have lied to Congress about WikiLeaks; 

Stone's efforts to seek WikiLeaks documents detailed in draft Mueller document - CNN; 

Roger Stone invokes Fifth Amendment in Senate Russia probe 

The Stone associate Jerome Corsi may be indicted as well after rejecting a favorable to him plea deal where Mueller agreed to recommend no jail time. That offer is no doubt off the table now. Jerome Corsi files formal complaint against Mueller; Mueller has emails from Stone pal Corsi about WikiLeaks Democrat email dump ("Mueller's team says in the court papers that Corsi scrubbed his computer between Jan. 13, 2017, and March 1, 2017, deleting all email correspondence that predated Oct. 11, 2016, including the messages from Stone about WikiLeaks and Corsi's email to Malloch.")

So Corsi deleted the emails according to Mueller. (Item # 5 Draft- Corsi Statement of Offense: WP; Stone's efforts to seek WikiLeaks documents detailed in draft Mueller document - CNN) He now wants to say that his prior testimony was based on a failure to recollect what he had deleted and to spin a story unsupported by the documentary evidence that he attempted to destroy. 

Possibly, by pretending to be a grandfatherly, folksy person, rather than a conspiracy theorist who has made a living spinning demonstrably false stories to the brain dead, he may be able to sell that line to a jury. 

Jerome Corsi, the conspiracy theorist enmeshed in the Mueller investigation, explained - Vox; Draft provides glimpse into investigation’s future - Vox (Corsi provided that draft plea agreement to the news media which I find inexplicable. Mueller’s Targets Are Blowing Up Their Deals. He’ll Make Them Pay. - POLITICO Magazine)

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Republican Gerrymandering-An Assault on Democracy: 

While the republicans lost 39 seats in the House-so far, losses would have been worse without GOP gerrymandered districts in states like Ohio and North Carolina. What’s Stronger Than a Blue Wave? Gerrymandered Districts=The New York Times 

{California's 21st district is still undecided with the Democrat barely leading in the last count; and North Carolina's 9th District, which was also a close race, has not been certified for the reasons discussed below}

In North Carolina, for example, Democrats won their usual 3 out of 13 seats even though their congressional candidates received 48.3% of the vote.

Heavily gerrymandered districts in Ohio produced a similar result.

This is a snapshot of Ohio's 4th congressional district held by the reactionary Jim Jordan (R):

It is a district tailor made for a right wing wingnut. An interesting part of this gerrymandering is the inclusion of Oberlin within the district (see the jut right near Lake Erie. Including that liberal small city in Jordon's district silences their voices. Putting a liberal voting area in one gerrymandered district helps protect another one that has fewer Trumpsters in it. 

The Democrats are put in the gerrymandered 9th congressional district which stretches on a sliver of land from Toledo to Cleveland along the Erie coastline. 

That in turn makes the 4th (Jordan), 7th Bob Gibbs-R) and 16th (Anthony Gonzalez -R) congressional districts safe for republicans rather than being more balanced. Republicans won 12 out of 16 congressional seats in Ohio, or 75%, with 52.66% of the votes.  

Democrats: 2,018,760

Republicans: 2,245,403

Ohio Election Results 2018: Live Midterm Map by County & Analysis

In Wisconsin, Democrats won 54% of state House vote, but gained only one seat, bringing their total to 36 out 99. The GOP is not able to gerrymander a statewide race and lost the races for Governor and state Attorney General. Their response will be to take away and limit the powers of those two offices during a lame duck session of the legislature. Wisconsin Republicans move to limit powers of incoming Democratic governor in lame-duck session - Chicago Tribune 

5 Things to Know About the Wisconsin Partisan Gerrymandering Case | Brennan Center for Justice

The North Carolina republicans did the same after losing the governorship.  

Gerrymandering is just one of many methods that are used to undermine  a democracy. 

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Investigation of Voting Fraud in North Carolina's 9th Congressional District: 

So far, this investigation looks like it may turn up instances of  fraud. 

North Carolina election-fraud investigation centers on operative with criminal history who worked for GOP congressional candidate - The Washington Post

Woman says she was paid to collect absentee ballots in North Carolina House race

Certification in limbo in N.C. House race as fraud investigation continues - The Washington Post

What’s the law on a new election in NC 9th district? | Charlotte Observer

The vote count, which has not yet been certified, had the republican incumbent in this gerrymandered district winning by 905 votes. 

State elections board refuses to certify 9th District results | Charlotte Observer

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Portfolio Management:

The primary theme for recent stock and ETF buys is to generate income in excess of what I am now receiving on short term bond and CD purchases.

Given my substantial weighting in short term bonds and CDs, I am concerned that short term interest rates may soon top out, stabilize and then move down when the economy enters a recession.

The last recession officially ended in June 2009, so the current economic recovery is already unusually long.  The average expansion cycle since 1945 lasted 58.4 months. The current one is at 114 months and counting. The longest U.S. expansion cycle since 1854 was 120 months. The average expansion cycles were lower prior to 1945. (1919 to 1945 = 35 months; 1854-1919 = 26.6 months). National Bureau of Economic Research

The relatively slow recovery from the Near Depression, compared to the more rapid one after a garden variety recession, and an abnormally long period of interest rate suppression by central banks, have contributed to the abnormally long economy recovery.

The abnormally low interest rates for a decade have caused corporate debt to explode skyward. $9 trillion corporate debt bomb is 'bubbling' in the US economy; How The Corporate Debt Bubble Will Destroy The Economy; The U.S. Is Experiencing A Dangerous Corporate Debt Bubble

Much of the increased corporate debt has been used for financial engineering, including stock buybacks and dividend increases. Those uses do not increase the corporation's ability to generate profits but are instead focused on increasing the price of the stock. The debt used for those purposes will remain and will need to be refinanced, potentially at much higher rates. 

My emphasis has been on purchasing higher quality debt issues. 

Junk bonds will crater during a recession. 

I am also avoiding junk rated corporate bonds since their current yields do not fairly compensate for their credit risks even if no recession occurs in 2019 or 2020.  

Equity preferred stocks have turned into falling knives over the past month or so. So, I am starting to nibble on them as one way to pick up some yield. 

I have also increased my exposure some to first mortgage bonds issued by utilities. 

I have slightly increased my average weighted duration of my bond portfolio. This is partly accomplished by buying more 2 and 3 year maturity instruments with redemption proceeds compared to 1 month to 1 year maturities. I have also restarted purchases of intermediate term corporate bonds maturing 3 to 4 years from now. 

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1. Equity REIT Common and Preferred Stock Basket Strategy:

A. Added 20 VNOPRM at $21.57 (used commission free trade): 

Quote: Vornado Realty Trust 5.25% Cumulative Preferred Series M Stock

Issuer: Vornado Realty Trust (VNO)

Issuer Last Earnings Report: Vornado Announces Third Quarter 2018 Financial Results 

VNO SEC Filings

VNO 2017 Annual Report

Prior Discussion: Item # 1.C. Bought 30 VNOPRM at $21.98 (5/21/18 Post) 

General Topic Discussion: Advantages and Disadvantages of Equity REIT Cumulative Equity Preferred Stocks

Prospectus

Current Position: 50 shares 

Maximum Position: 100 shares (raised from 50, but the next purchase has to be below $20)

Purchase Restriction: Small Ball Rule

Optional Call: On or after 12/13/2022 at par value plus accrued and unpaid dividends

Stopper Clause: Yes (requires the company to cease paying cash dividends to common shareholders before electing to defer the preferred dividend which enforces the preferred shareholder's superior claim on cash compared to the common shareholder only) 

Dividends: Quarterly, cumulative and non-qualified as a pass through entity

Next Ex Dividend Date: 12/14/18

Vornado Declares Quarterly Dividends On Preferred Shares 

Reinvestment: No (just trying to increase cash flow)

Par Value: $25

Yield at a TC of $21.57  = 6.08%

B. Bought 10 APLE at $15.71-Used Commission Free Trade: 

Quote: Apple Hospitality REIT Inc. (APLE)
Website: Apple Hospitality REIT
Hotel Map: Hotel Map
APLE SEC Filings

"Apple Hospitality REIT, Inc. (NYSE: APLE) owns one of the largest portfolios of upscale, select-service hotels in the United States. Our national, geographically diverse portfolio consists of 241 Hilton and Marriott branded hotels located across 34 states, serving some of the country’s top markets for business and leisure travelers." Corporate Overview - Apple Hospitality REIT

Closing Price Yesterday: APLE $15.66 -$0.29 -1.82% 

Last Substantive Discussion: Item # 3.B. (8/12/18 Post)

Current Position in this Account: 105+ Shares at an average cost per share of $17.52

Maximum Position in this Account: 120 Shares + Shares purchased with dividends (20 shares left in small ball buying program which I will use up in one trade)

Purchase Restriction: Small Ball Rule 

Dividend: Monthly at $.1 per share

Last Ex Dividend Date: 12/1/18

Apple Hospitality REIT Announces December 2018 Distribution 

Dividend Yield at a TC of $17.52: 6.85%

Recent Earnings Report: Q/E 9/30/18

Apple Hospitality REIT Reports Results of Operations for Third Quarter 2018 

There was a 2.1% decline in MFFO per share Y-O-Y and small declines in comparable hotel occupancy and REVPAR as well. 

 “As anticipated, the second half of 2018 has been and will be challenging. Our third quarter results were impacted by tough comparisons in Texas and Florida from business related to hurricanes Harvey and Irma in 2017, disruption from Hurricane Florence in the Mid-Atlantic at the end of September, and continued competitive pressures in many markets. Despite these challenges, we have continued to produce superior bottom-line results and have taken advantage of opportunities presented, including entering into contracts during the quarter for the sale of 17 hotels and repurchasing over 1.6 million shares of our stock since quarter end."

Capital Spending: 

Hotels require continuous expenditures for maintenance and capital improvement  

Dispositions: (sold two hotels in the quarter and has 17 hotels under contract for sale for a combined gross proceeds of about $181M)

Hurricane Damage: As previously discussed, APLE has experienced some damage to hotels located in hurricane zones. The most recent hurricane caused damage to two hotels located in Panama City, Florida that had to be shutdown for repairs. Part of the repair expense will not be covered by insurance but the REIT does have coverage for business interruption due to a covered weather event. Apple Hospitality REIT Provides Hurricane Michael Update ("The combined named windstorm deductible for the two properties is less than $1 million.")

2. Short Term Bond/CD Ladder Basket Strategy:

I am starting to slightly extend my weighted average duration by buying some bonds and CDs maturing in the 2 to 3 year time frame.

A. Bought 1 Wells Fargo 3.25% CD (monthly interest payments) Maturing on 11/29/21 (3 year CD):

B. Bought 2 Treasury 3 Month Bills at Auction Maturing on 2/28/19:
IR  = 2.417%

Auction Results:

C. Bought 1 Treasury 2.75% Coupon at Auction Maturing on 11/30/2020 (2 Year Treasury Note):
YTM =  2.836% (bought at a slight discount to par value/OID interest)

Auction Results: 

3. Small Ball Income Generation-Commission Free ETFs:

A. Added 5 BKLN at $22.95 and 5 at $22.64-(commission free for Vanguard Brokerage customers) :

Quote: Invesco Senior Loan ETF Overview
Sponsor's Website: Invesco

Current Position: 60+ shares

Maximum Position: 200 shares + shares purchased with dividends

I am going to hold off buying more until the price falls below $22.3. There are forces negatively impacting this fund: (1) the exposure to junk credits and (2) the change in the herd's consensus about the likely future course of short term rates.    

Dividends: Monthly at a variable rate

Dividend Reinvestment: Yes 

Last Substantive Discussion: Item # 1.A Bought 50 BKLN at $23.17 (10/10/18)

I have nothing to add to that recent discussion.

B. Bought 5 VWO at $38.89-Commission Free to Vanguard Brokerage Customers: 

Quote: Vanguard FTSE Emerging Markets ETF Overview

Closing Price Yesterday: VWO $39.73 -$0.75 -1.85% 

Sponsor's Website: VWO-Vanguard FTSE Emerging Markets ETF (expense ratio .14%)

Last Discussed: Item # 4.B. (11/18/18 Post

Current Position: 10 Shares

Maximum Position: 50 shares

Average Cost Per Share = $39.21

Purchase Restriction: Small Ball Rule

Vanguard FTSE Emerging Markets Index Fund ETF Shares (VWO) Total Returns

Dividends: Quarterly at a Variable Rate

Last 4 Quarters: $1.05 per share

Dividend Yield Trailing Twelve Months at $39.21 TC = 2.68%

4. Small Ball-Income Generation BDCs: 

A. Bought 50 TPVG at $12.11-In a Roth IRA Account ($7 commission at Vanguard): 

Quote: TriplePoint Venture Growth BDC Corp. (TPVG)

Closing Price Yesterday: TPVG $12.01 -$0.10 -0.83% 

Website: TriplePoint Venture Growth

TPVG SEC Filings

2017 Annual Report

Last Buy Discussions:  Item # 3.A. (8/15/18 Post);Item # 2.B. Added 10 TPVG at $11.6 (3/19/18 Post); Items 1.B. and 1.C. Bought 50 TPVG at $12.32 and 10 at $12.01 (2/26/18 Post)

Management: External

Maximum and Current Position in this Account: 100 Shares + shares purchased with dividends

Dividend: Quarterly at $.36 (annually at $1.44)

The dividend yield at $12.11 would be about 11.89%. 

TriplePoint Venture Growth BDC Dividends

Last Ex Dividend Date:  11/29 (after this last purchase)

Adjusted for the dividend, the shares closed down 3 cents at $11.95 on the ex dividend date. 

Dividend Reinvestment: Yes 

Last Share Offering: TriplePoint Venture Growth BDC Corp. Prices Public Offering and Concurrent Private Placement of Common Stock (August 2018); Prospectus

Net Asset Value Per Share History: 

This BDC had its IPO in March 2014. The offering price was $15.   

"The total sales load for this offering is approximately $7.5 million, or $0.90 per share. Our Adviser has agreed to pay to the underwriters 50% of the total sales load in an amount equal to approximately $3.75 million. We will incur offering expenses of $1.75 million in connection with this offering and the Concurrent Private Placement." 

9/30/18:  $13.59
12/31/17: $13.25
9/30/17:  $13.39 
9/30/16:  $13.44
9/30/15:  $14.52 
9/30/14:  $14.64

Last Earnings Report:  Q/E 9/30/18 

SEC Filed Press Release 

10-Q for the Q/E 9/30/18 (investment list starts at page 7)  

TriplePoint Venture Growth (TPVG) CEO Jim Labe on Q3 2018 Results - Earnings Call Transcript | Seeking Alpha (Page 3: "During the quarter, PillPack closed its sale to Amazon for $1 billion resulting in a $1 million realized gain for us. FarFetch successfully closed its initial public offering resulting in over $3 million of additional unrealized gain for us based on its closing price.")(emphasis added)

Farfetch Preferred Stock Cost $170K/ MV = $3.63M as of 9/30/18

The Farfetch preferred stock is probably convertible into common shares, though that is not spelled out. The position was still owned as of 9/30/18. 

Farfetch Ltd. Cl A Stock Quote

As previously discussed, TPVG also had a position in RING which was acquired by Amazon. Amazon buys Ring, the smart doorbell maker backed through Alexa Fund I discussed RING in Item # 2.B. When one of these private companies is acquired by a publicly traded company, particularly one with a high credit rating, the outstanding debt will generally speaking be repaid early, which results in a prepayment fee to the BDC and possibly another fee for termination of an unused line of credit. 

Generally speaking, where TPVG has an equity position, it is small compared to the debt position. I could not find a loan to Farfetch. Possibly, there was one in the past that was paid off, leaving TPVG only with its equity position.   

Sell Discussions: I sold 50 shares at $13.39: Item 2.B. (3/4/2017 Post)(snapshot realized gain= $153.08).

I sold earlier in 2017 a 50 share lot at $12.33, realizing a $84.48 gain. Item # 3 (1/16/17 Post) I discussed purchasing that lot at $10.61 in Comment Blog # 3-South Gent | Seeking Alpha

TPVG Trading Profits To Date: $237.56

The goal with any BDC purchase is to harvest one or more dividends and to escape at whatever profit may be available. My preference is to collect 1 year of dividends before exiting the position. Given the high dividend yields, a total return in excess of the dividend yield, no matter how small, is viewed as a victory. 

One of the drawbacks IMO is the large dollar volume of loans paid back early by TPVG's borrowers. There is a time lag between the repayments and the time the money is put to work again. Also, the newer deals may prove to be less than stellar compared to ones lost through early exits. For BDCs, there will be some crash and burns even during an economic expansion.     

Disclaimer: I am not a financial advisor but simply an individual investor who has been managing my own money since I was a teenager. In this post, I am acting solely as a financial journalist focusing on my own investments. The information contained in this post is not intended to be a complete description or summary of all available data relevant to making an investment decision. Instead, I am merely expressing some of the reasons underlying the purchase or sell of securities. Nothing in this post is intended to constitute investment or legal advice or a recommendation to buy or to sell. All investors need to perform their own due diligence before making any financial decision which requires at a minimum reading original source material available at the SEC and elsewhere. A failure to perform due diligence only increases what I call "error creep". Stocks, Bonds & Politics: ERROR CREEP and the INVESTING PROCESS Each investor needs to assess a potential investment taking into account their personal risk tolerances, goals and situational risks. I can only make that kind of assessment for myself and family members.