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Virtus Diversified Income & Convertible Fund V.ACV.P


Primary Symbol: ACV

Virtus Diversified Income & Convertible Fund (the Fund) is a diversified, closed-end management investment company. The Fund's investment objective is to provide total return through a combination of current income, current gains and long-term capital appreciation. The Fund will normally invest at least 80% of its net assets (plus any borrowings for investment purposes) in a diversified portfolio of convertible securities, income-producing equity securities and income-producing debt and other instruments of varying maturities, of which at least 50% of total managed assets are invested in convertibles. The Fund has the latitude to write covered call options on the stocks held in the equity portion. The Fund's investment advisor is Virtus Investment Advisers, Inc., and its investment subadvisor is Voya Investment Management Co. LLC.


NYSE:ACV - Post by User

Post by happyhuntingon May 30, 2019 6:23pm
147 Views
Post# 29786833

Restructuring

RestructuringSome sensible moves here but it suggests that the upcoming results are going to be very ugly. They are clearly having to cut deep into the cost base to stem the losses. Moving forward the loss of the Kiju contribution is going not going to help. Still very tough to see this getting to a sustainable acceptable EBITDA margin given its size and the low gross margin. Also, repeated restructurings of this nature in a small business are going to be tough on morale - there is a clear danger that they will continue to haemorrhage their best people. Chewing through multiple CFOs (are we now on number 4 or 5?) in a short space of time is never a good sign. Now the COO is also going. I'm not sure why the CEO hasn't taken the fall for the many bad decisions that have led to this situation - surely he is ultimately responsible? I would certainly wait on the sidelines through the next two sets of results.
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