On July 25, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a renowned investment firm, reduced its holdings in Center Coast Brookfield MLP & Energy Infrastructure Fund (CEN, Financial). This article provides an in-depth analysis of the transaction, the profiles of the guru and the traded company, and the potential implications of this move on the stock market.
Details of the Transaction
The transaction saw Saba Capital Management, L.P. (Trades, Portfolio) reduce its stake in CEN by 44,547 shares, representing a 5.88% change. The shares were traded at a price of $20.49 each. Following the transaction, the firm's total holdings in CEN stand at 713,142 shares, accounting for 0.28% of its portfolio. This reduction has a minor impact of -0.02% on the firm's portfolio. The firm now holds a 14.47% stake in CEN.
Profile of the Guru: 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 prominent 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 preferred sectors are Financial Services and Technology.
Overview of the Traded Company: Center Coast Brookfield MLP & Energy Infrastructure Fund
Center Coast Brookfield MLP & Energy Infrastructure Fund (CEN, Financial) is a US-based closed-end management investment company. The company primarily invests in a portfolio of master limited partnerships (MLPs) and energy infrastructure companies. As of July 27, 2023, the company has a market capitalization of $100.521 million and a stock price of $20.39. The company's PE percentage stands at 755.19.
Analysis of the Traded Stock
Since its IPO, CEN's stock has seen a significant decrease of 89.81%. However, the stock has gained 19.38% year-to-date. The GF Score of the stock is 38/100, indicating poor future performance potential. The stock's balance sheet, profitability, and growth ranks are 3/10, 2/10, and 0/10 respectively. The GF Value of the stock cannot be evaluated due to insufficient data.
Evaluation of the Traded Company's Financial Health
CEN's financial health can be assessed by examining its ROE and ROA, which stand at 0.16 and 0.13 respectively. The company's ROE and ROA ranks are 751 and 745 respectively. The company's F Score is 5, indicating average financial health. However, due to insufficient data, the company's Z Score, cash to debt ratio, and interest coverage cannot be evaluated.
Assessment of the Traded Stock's Momentum
The stock's RSI 5 Day, RSI 9 Day, and RSI 14 Day are 63.41, 68.63, and 67.90 respectively. The stock's momentum index 6 - 1 month and 12 - 1 month are 1.40 and 11.18 respectively. The stock's RSI 14 Day rank and momentum index 6 - 1 month rank are 1571 and 366 respectively. The stock's momentum rank is 10/10, indicating strong momentum.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s decision to reduce its stake in CEN is a significant move that could potentially impact both the firm's portfolio and the traded company's stock. Despite the stock's poor performance since its IPO and low GF Score, it has shown strong momentum and has gained significantly year-to-date. Investors should closely monitor the stock's performance and the firm's future transactions.
