After careful review of your holdings in your Liberty One CAPSTONE portfolio, our committee has decided to adjust the portfolio by replacing GrubHub (GRUB) & BlackRock Kelso Capital Corp (BKCC) with Tenable Holdings (TENB) & Envestnet, Inc (ENV). We view that current competitive landscape of online food delivery platforms has eroded GrubHub’s economic moat and require significant investments from the company to maintain its market share. Despite enjoying several years of strong profitability and growth, weaknesses in its recent quarters has proven more challenging than initially thought. BKCC is a business development company that has seen its Net Asset Value (NAV) decline due to portfolio quality risks. Coverage ratio metrics have also deteriorated to a point where we feel puts constraints on its ongoing distributions.

Tenable Holdings (TENB) is engaged in providing cybersecurity solutions for businesses that are designed to measure and report cyber exposure in both technical and business terms. TENB continues to enjoy robust growth and sticky customer relationships. As more enterprises move their traditional infrastructure to the cloud, TENB’s market is expected to continue to see long-term secular growth. 

Envestnet(ENV) provides wealth management technology and solutions to financial firms and advisors. Its platform AUM continues to experience double digit growth in addition to greater adoption of its technology solutions. As the industry continues to transition from commission based to fee based, ENV is positioned well to benefit from the transition.

If you have any questions about these or any changes in your Liberty One portfolio(s), potential tax implications, or would simply like to learn more, please contact your financial advisor.

Thank you for your continued trust and confidence!