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AltData (32.15)

Reality Check!

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March 11, 2013 – Comments (2) | RELATED TICKERS: CG

Wow! Look at that yield! 10.2%! That's according the Fool's Capital IQ data and 10.16% listed on Scottrade data.

BUT IT IS WRONG! INCORRECT! NOT TRUE!

Why do you say that, blesto?

Those yields are being based on the last payout of $0.85 per unit share. That would be nice if that's what they were gonna payout every quarter, but they're not!

This is where doing your due diligence comes into play.

One needs to remember that Carlyle is a limited partnership. If you read everything from their website and SEC filings you would know that they are paying $0.16 per unitshare per quarter. The 4th quarter you get the $0.16 plus whatever catch-up distributable earnings from the year. The catch-up may vary from year to year depending on how well Carlyle does.

This past 4th quarter it was $0.16 + ($0.69 the catch-up amount) = $0.85 per unit share.

The $0.16 per unitshare almost assures you a 1.96% annual yield add in the catch-up payment then the annual yield is just over 4%

That 10% sounded to good to be true, and you are right. It's not. True that is.
Always check out high sounding yields before you orgasm over it.

Next year the catch-up may be more, may be less. I'm investing with the confidence that it will be more. It might not happen, but I know I'm gonna get that $0.16 per unitshare. I believe Carlyle does good work with their deals and investments. That's why I invested in them.

Until they give me a reason to believe otherwise...


...I'm long on The Carlyle Group,


blesto

2 Comments – Post Your Own

#1) On March 11, 2013 at 8:14 PM, HarryCaraysGhost (87.66) wrote:

Congrats blesto,

I have been very impessed with Carlyle ever since you picked it for the contest, And am very pleased that you are reaping the rewards in your real life portfolio.

Cheers. 

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#2) On March 12, 2013 at 3:45 PM, AltData (32.15) wrote:

Thanks man!

I do look for good yields myself, but it's not the only criteria. Carlyle in particular, I believe is undervalued. I think they suffered from being in Facebook's shadow, being that they both IPO'd about the same time.

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