Sold Half the Apollo Fund (AFT)

AFT: Reduced from 5.03% to 2.52%

Sold approximately half my AFT because the price has been appreciating much faster than the NAV. Historically it traded at a discount to NAV (almost 10% discount over the past year). Recently that discount disappeared. As long as rates remain high, this fund will continue to pay a juicy distribution, but if/when rate cuts begin, the distributions will fall, and so will the price. The higher the price premium over NAV…the greater that fall will be.

Here’s a link to the AFT Price/NAV chart.

STWD: Increased from 2.04% to 3.01%

STWD took a brief hit because another (unrelated) Starwood fund placed a limit on redemptions. Full story in this recent video “Starwood Confusion = Opportunity”.

WDI: Increased from 1.92% to 2.4%

WDI just increased their dividend and reduced its leverage (slightly). Income has probably reached peak levels, but at a 7% discount to NAV it still represents decent value.

ABR: Increased from 0.79% to 1.34%

Formerly a core holding, I reduced ABR exposure substantially due to risks in the Multi-Family lending sector. A good chance that ABR’s excellent executive team can navigate through the difficult times, but I was being cautious. I’m slowly easing back in.