We commenced active coverage on Apollo Investment Corporation (AINV) back in August of 2009 at the $6.50 per share level, and, for all intents and purposes, the stock has been in a solid uptrend ever since. Apollo just set a new 52-week high of $12.75 per share on 15 March, representing a 96% increase from our $6.50 buy-range – not to mention the fact the company pays a quarterly dividend of $0.28 per share. Apollo Investment Corporation is a New York-based BDC (Business Development Company) that generates both current income and capital appreciation through debt and equity investing in middle-market private companies.

Since AINV’s initial public offering in April 2004 and through December 31, 2009 – the company’s total invested capital has reached $5.9 billion in 126 portfolio companies. And, over that same period, Apollo has completed transactions with more than 85 different financial sponsors. Apollo’s capital position has improved substantially following its most recent stock offering, which raised about $110 million. Apollo also extended the maturity date on a credit facility through April 2013 and is working to cleanse its portfolio of underperforming investments. The company intends to focus its strategy on investing in larger companies, which means Apollo could benefit from increasing merger and acquisition activity throughout 2010.

Apollo Investment Corporation is a well-run company, and although I anticipate the AINV share-price finishing even higher by the end of the calendar year, you may want to take advantage of the current price-strength to take partial gains off the table. Hold the remainder of your position for longer-term projected gains.

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