Most of the time, I'm a control freak when it comes to investing. Most of the time, but not always. Prospect Capital (NASDAQ:PSEC) is that sort of exception, a publicly traded business development company (BDC) that holds its annual meeting of shareholders on Dec. 7 in New York.
As a shareholder, I've voted seemingly against our interests and agreed to allow management to issue new shares at prices below Net Asset Value (NAV). Think of it like discounting. Prospect is asking for the right to sell on the cheap in order to raise cash quickly.
If that sounds like an awful strategy for investors betting on a steady increase in the value of Prospect's equity, you're right. So why go along with it? Strong performance and insider buying tell me management has earned the right to be trusted. Find out more in the video below.
Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apollo Investment and Prospect Capital at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.
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