Shares of Gladstone Investment Corporation (GAIN) are up 24% so far in 2016, almost five times the return of the S&P 500. Not bad for a business development company (BDC). Dullum said the BDC is currently invested in 36 companies across 19 states and 17 industries. The average investment size ranges from $5 million to $30 million. Right now the portfolio holds investments in sectors including light and specialty manufacturing, specialty consumer products and services, and industrial products and service. Of course, valuations are high partly due in part to the Federal Reserve's decision to keep interest rates low. If rates rise, Dullum said it would not hurt Gladstone as much as other BDC's because it does not use straight debt when buying companies.

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