"Insights on Selling Ares Capital Corp Stock: My Recent Experience"
The author explains why they recently sold their shares in Ares Capital Corp (ARCC), a Business Development Company (BDC). They cite three reasons for their decision: the unfavorable macroeconomic outlook, ARCC's relatively high valuation, and the defensive structure of its portfolio compared to its peers. The author believes that the anticipated recession and interest rate cuts will negatively impact ARCC's performance, making its current valuation unattractive. They reallocated their capital into more defensive opportunities that are expected to benefit from declining interest rates.
