In a recent transaction, Saba Capital Management, L.P. (Trades, Portfolio), a prominent investment firm, has acquired a significant stake in ClearBridge Energy Midstream Opportunity Fund Inc (EMO, Financial). This article aims to provide an in-depth analysis of this transaction, the profiles of both the guru and the traded company, and the potential implications for value investors.
About Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio), located at 405 Lexington Avenue, New York, NY 10174, is a renowned investment firm with a diverse portfolio. The firm currently holds 762 stocks, with a total equity of $5.24 billion. Its top holdings 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 investment philosophy is primarily focused on the Financial Services and Technology sectors.
Transaction Details
The transaction took place on July 14, 2023, with Saba Capital Management, L.P. (Trades, Portfolio) adding 22361 shares of ClearBridge Energy Midstream Opportunity Fund Inc to its portfolio. The shares were acquired at a price of $30.85 each, bringing the total shares held by the guru to 2306510. This transaction had a 0.01% impact on the guru's portfolio and increased their position in the traded stock to 18.03%.
Profile of ClearBridge Energy Midstream Opportunity Fund Inc
ClearBridge Energy Midstream Opportunity Fund Inc (EMO, Financial), a non-diversified, closed-end management investment company, aims to provide long-term investors with a high level of total return with an emphasis on cash distributions. The company, which operates in a single segment, has a market capitalization of $390.844 million. The company's stock symbol is EMO, and it was first listed on the stock exchange on June 10, 2011.
Stock Performance and Valuation
As of the date of this article, the stock price of EMO stands at $30.57, reflecting a 0.91% decrease since the transaction. The stock's PE percentage is 2.72. However, due to insufficient data, the GF Valuation and the Price to GF Value cannot be evaluated. The stock has seen a year-to-date price change ratio of 10.8%, but it has declined by 67.67% since its Initial Public Offering (IPO).
Stock Rankings and Scores
ClearBridge Energy Midstream Opportunity Fund Inc has a GF Score of 38, indicating poor future performance potential. The stock's balance sheet, profitability, and growth ranks are 3, 2, and 0 respectively. The stock's F Score is 4, and it has a Z Score of 0.00, indicating no bankruptcy risk. The stock's ROE and ROA are 34.07% and 23.49% respectively, with ranks of 81 and 69. However, due to insufficient data, the gross margin growth, operating margin growth, and revenue growth cannot be evaluated.
Industry Performance
ClearBridge Energy Midstream Opportunity Fund Inc operates in the Asset Management industry. The industry's current state and the stock's performance within this context will be crucial factors for investors to consider.
Conclusion
This transaction by Saba Capital Management, L.P. (Trades, Portfolio) represents a significant addition to its portfolio. The acquisition of shares in ClearBridge Energy Midstream Opportunity Fund Inc could potentially influence the stock's performance and the guru's portfolio. However, investors should also consider the traded company's current performance, industry context, and future prospects. As always, thorough research and careful consideration are essential when making investment decisions.
