Business development companies (BDCs) have been hit hard in the past two years due to worries about rising rates and a slowing economy. Gregg Abella, portfolio manager at Investment Partners Asset Management, said the turn is at hand for the small business lending vehicles. 'I like them for their forward yield, their discount to net asset value (NAV) and I’m a fan of them because they trade at a low multiple of their earnings,' said Abella. 'It’s an out-of-favor sector with a lot of unloved companies and as a value guy that appeals to me.' Abella is bullish on Prospect Capital (PSEC) which last traded at $7, a nearly 30% discount to its NAV of $9.65. The shares, which yield over 14%, are down over 20% in the past year, but have bounced back 30% since reporting better than expected net investment income a share earlier his month.