Fidus Investment: Suspiciously Doing Too Well

Fidus Investment maintains a buy rating, driven by robust earnings, strong dividend coverage, and resilient portfolio performance despite sector headwinds. FDUS's portfolio, heavily weighted toward technology and IT services, remains healthy with 79.5% first lien debt and minimal non-accruals, outperforming BDC peers. Q1 results showed record net investment income of $0.62 per share and positive net investment activity, supporting a 10.7% yield with supplemental distributions.