Fund Increases Holdings: Is This Stock a Good Buy?

Core Insights - Gateway Wealth Partners increased its stake in FS KKR Capital Corp. by acquiring 708,930 shares, raising the position's value to approximately $10.80 million as of September 30, 2025 [1][2][9] Company Overview - FS KKR Capital Corp. operates as a business development company, primarily generating revenue from interest income on senior secured and subordinated debt investments in private U.S. middle-market companies [5][6] - The company focuses on providing customized credit solutions and occasionally takes equity positions or warrants alongside debt investments [5][6] - As of November 05, 2025, FS KKR Capital's market capitalization is $4.37 billion, with a revenue of $1.23 billion over the trailing twelve months (TTM) and a dividend yield of 17.93% [4] Performance Metrics - FS KKR Capital's stock price was $14.79 as of November 05, 2025, reflecting a 16.0% decline over the past year and trailing the S&P 500 by 34 percentage points [3][10] - Over the last three years, the stock generated a total return of 25%, equating to a compound annual growth rate (CAGR) of 7.9%, which is significantly lower than the S&P 500's total return of 72% and CAGR of 19.9% during the same period [10] Investment Position - The acquisition of FS KKR Capital stock has made it the ninth-largest position for Gateway Wealth Partners, representing 1.46% of the fund's total assets under management (AUM) of $740.67 million [2][9] - The fund reported a total of 410 equity positions, indicating a diversified investment strategy [2]