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OHA Investment: Major Shareholder Filing

In order to keep our email inbox filled at all times we’ve signed up wherever possible for alerts from all the public BDCs whenever a new document is posted.

MAJOR SHAREHOLDER

OHA Investment (OHAI) alerted us of a new Amended Statement of Beneficial Ownership form.

The form went up on OHAI’s website on February 14th, but relates to share ownership in the energy-oriented BDC at 12-31-2016.

According to the filing, RiverNorth Capital Management owns 2,143,426 shares, or 10.63% of the common stock outstanding.

WHO ?

Just in case readers don’t keep track of every hedge fund and asset manager, RiverNorth Capital Management is a Chicago-based firm that specializes in “opportunistic strategies in niche markets”.

Given that companies like OHAI don’t get any more “niche-y”, this makes sense.

DOUBLING DOWN-LITERALLY

Moreover, RiverNorth appears to be upping its stake in the troubled BDC, whose stock price has dropped by half in the past year, from low to the lowest depths.

At time of writing, OHAI was priced at $1.80, just above its all-time low of $1.70.

PRIOR POSTINGS

Our last major post was in November 2016 when OHAI reached a new low (at the time) of $2.72.

Then the BDC had yet another investment explode in the form of Bennu, which we also wrote about, and things just got worse for OHAI.

IDLE SPECULATION

We’re intrigued by RiverNorth’s major interest in the BDC, and the near doubling of its position in the last year or so.

Maybe the asset manager has made a terrible mistake and can’t get out ?

Or, maybe, RiverNorth perceives there’s money to be made (or at least losses to be mitigated) by owning more of the stock ?

Or both ?

ALMOST FAMOUS

This is the same RiverNorth that was often in the news last year because it was heavily involved in an “activist” challenge to Fifth Street Finance (FSC), another BDC often in the news, but for the wrong reasons.

Knowing when to hold and when to fold, RiverNorth sold out its position in FSC at a premium in February 2016.

INSIGHT

We have none.

Just passing on the facts to anyone interested who doesn’t get an OHAI email Alert.