In a recent transaction, Saba Capital Management, L.P. (Trades, Portfolio), a prominent investment firm, has acquired a significant stake in ClearBridge MLP & Midstream Fund Inc. This article will delve into the details of the transaction, provide an overview of both the guru and the traded company, and analyze the potential implications of this acquisition.
Profile: Saba Capital Management, L.P. (Trades, Portfolio)
Headquartered at 405 Lexington Avenue, New York, Saba Capital Management, L.P. (Trades, Portfolio) is a well-known investment firm with a diverse portfolio. The firm's investment philosophy is centered around identifying undervalued assets and capitalizing on market inefficiencies. As of the date of this article, the firm holds 762 stocks, with a total equity of $5.24 billion. The top holdings of Saba Capital Management include Templeton Global Income Fund (GIM, Financial), BlackRock Capital Allocation Trust (BCAT, Financial), BlackRock Health Sciences Trust II (BMEZ, Financial), BlackRock Innovation & Growth Tr (BIGZ, Financial), and BlackRock ESG Capital Allocation Trust (ECAT, Financial). The firm's investments are primarily concentrated in the Financial Services and Technology sectors.
Transaction Details
The transaction took place on July 5, 2023, with Saba Capital Management adding 42829 shares of ClearBridge MLP & Midstream Fund Inc. to its portfolio. The shares were acquired at a price of $34.77 each, bringing the total number of shares held by the guru to 1,455,395. This acquisition represents a 0.97% position in the guru's portfolio and a 10.93% stake in the traded company. The transaction had a 0.03% impact on the guru's portfolio.
Profile: ClearBridge MLP & Midstream Fund Inc.
ClearBridge MLP & Midstream Fund Inc., symbol CEM, is a U.S.-based, non-diversified, closed-end management investment company. The company, which went public on June 25, 2010, primarily invests in energy master limited partnerships (MLPs) and energy midstream entities. The company operates in a single segment and has a market capitalization of $462.878 million. As of the date of this article, the company's stock is trading at $34.75, with a PE percentage of 2.56. However, due to insufficient data, the GF valuation cannot be evaluated.
Stock Performance and Rankings
Since its IPO, ClearBridge MLP & Midstream Fund Inc. has seen a decrease of 65.25% in its stock price. However, the stock has gained 7.55% year-to-date. The stock's GF score stands at 35, indicating poor future performance potential. The stock's balance sheet and profitability rank at 3 and 1, respectively, while its momentum ranks at 10. The stock's F score is 4, and it has a Z score of 0.00.
Financial Health and Industry Position
ClearBridge MLP & Midstream Fund Inc. operates in the Asset Management industry. The company's ROE and ROA stand at 35.02 and 24.40, respectively, ranking 75 and 65 in these categories. However, the company's cash to debt ratio, gross margin growth, operating margin growth, and 3-year revenue, EBITDA, and earning growth are all at 0.00, indicating potential areas of concern.
Stock Momentum and Predictability
The stock's RSI 5 day, RSI 9 day, and RSI 14 day stand at 60.66, 60.04, and 58.50, respectively. The momentum index 6 - 1 month is 0.62, and the momentum index 12 - 1 month is 18.02. However, the stock's predictability rank is not available due to insufficient data.
Conclusion
In conclusion, Saba Capital Management's acquisition of a stake in ClearBridge MLP & Midstream Fund Inc. represents a significant addition to its portfolio. While the traded company has shown some areas of concern, particularly in terms of its financial health, it also presents potential opportunities for growth. As always, investors are advised to conduct their own thorough research before making any investment decisions.
