The Company had net unrealized losses of $1.3 million which consisted of $2.0 million of unrealized losses from investments and a deferred tax benefit of $0.7 million.
The Company had an increase in net assets resulting from operations of $1.6 million. This increase is composed of net investment losses of $0.4 million, net realized gains of $3.3 million, and net unrealized losses of $1.3 million as noted above.
PORTFOLIO AND INVESTMENT ACTIVITY
As of May 31, 2010, the Company had long-term investments of $200.9 million. The Company’s long-term investments consisted of 43 portfolio companies, which were comprised of approximately 47% private MLPs, 33% public MLPs and 20% energy debt securities.NET ASSET VALUE As of May 31, 2010, the Company’s net asset value was $172.5 million or $16.89 per share. This represents a decrease of $0.14 per share or 0.8% compared to $173.6 million or $17.03 per share on February 28, 2010. As of May 31, 2010, the total cost basis of the Company's investments exceeds the fair value reflected on the Statement of Assets and Liabilities. This excess, combined with capital and net operating losses carryforwards, resulted in a deferred tax asset of $14.8 million or approximately $1.45 per share. LIQUIDITY AND CAPITAL RESOURCES As of May 31, 2010, the Company had approximately $7.2 million invested in short-term repurchase agreements. As of June 30, 2010, the Company had approximately $5.7 million in repurchase agreements. The Company’s repurchase agreements are collateralized by U.S. Treasury securities, and the Company’s counterparty is J.P. Morgan Securities Inc. As of May 31, 2010, the Company had $52.0 million of borrowings under its Credit Facility (at an interest rate of 2.28%), which represented 69.7% of its borrowing base of $74.6 million (83.2% of its borrowing base attributable to quoted securities). As of June 30, 2010, the Company had $52.0 million of borrowings under its Credit Facility (at an interest rate of 2.36%), which represented 68.0% of the borrowing base of $76.5 million (80.8% of its borrowing base attributable to quoted securities). The maximum amount that the Company can borrow under its Credit Facility is limited to the lesser of the commitment amount of $70.0 million and the borrowing base.