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GraniteShares divested its entire stake in Trinity Capital in the last quarter.
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The fund noted it reduced its holdings by 212,465 shares, amounting to around $3.29 million.
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At the end of the previous quarter, this represented about 1.9% of the fund’s total assets.
GraniteShares Advisors LLC has completely exited its position in Trinity Capital (NASDAQ:TRIN), selling 212,465 shares during the fourth quarter, valued at approximately $3.29 million.
According to a recent SEC filing, as of January 20, GraniteShares sold off 212,465 shares of Trinity Capital during the last quarter, thereby reducing its investment in the company to zero.
Here are some of the fund’s top holdings following the adjustments:
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NASDAQ:MSFT: $5.59 million (3.4% of assets under management)
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NASDAQ:GOOGL: $4.25 million (2.6% of assets under management)
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NASDAQ:META: $3.8 million (2.3% of assets under management)
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NYSE:LLY: $3.08 million (1.9% of assets under management)
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NYSE:UAN: $2.88 million (1.7% of assets under management)
As of Friday, Trinity Capital’s stock price was $16.10, which is a 13% increase over the past year, contrasting with a 14% rise for the S&P 500.
|
metric |
value |
|---|---|
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Revenue (TTM) |
$284.52 million |
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Net profit (TTM) |
$142 million |
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dividend yield |
15% |
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Trinity Capital offers venture debt and equipment financing mainly to growth-stage companies in technology and innovation sectors.
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The Company operates as a business development firm, generating income through interest from its loan portfolio along with commissions and profits related to equity.
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Its main clientele consists of venture-backed firms looking for non-dilutive capital to support growth and scaling efforts.
Trinity Capital Inc. specializes in providing flexible debt financing to emerging growth enterprises. The firm uses its venture debt expertise to assist innovative companies that need financing alternatives beyond traditional equity. Thanks to careful underwriting and a diverse portfolio, it’s become a crucial partner for high-growth firms looking for tailored financing options.
Even though Trinity’s dividend yield of around 15% might attract income-focused investors, it’s important to note that its price performance hasn’t kept pace with the broader market. To clarify, Trinity is indeed doing well—showing solid net investment returns and maintaining a notable dividend. In its most recent quarter, Trinity reported a gross investment income of $75.6 million, which is more than a 22% increase year-over-year, and a net investment income of $37.0 million, up nearly 26%. CEO Kyle Brown attributed these results to “disciplined execution and rigorous underwriting,” highlighting robust demand across their credit strategy.
However, it’s essential to remember that venture debt can be cyclical. GraniteShares’ total exit could indicate that dividends have already served their purpose. After experiencing a strong year, largely in line with the broader market, credit conditions are reportedly solid, and the gradual upward trend seems to continue. This type of investment feels somewhat narrow, particularly when safer income alternatives provide similar yields without the risks associated with venture investments.
Additionally, the broader portfolio appears to favor large-cap growth stocks rather than niche credit opportunities. Within that context, the double-digit yield from Trinity feels more like a concentration risk than a stabilizing factor.
