On July 28, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a renowned investment firm, added 974,727 shares of ClearBridge Energy MLP Total Return Fund (CTR, Financial) to its portfolio. 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 acquisition.
Details of the Transaction
The transaction took place on July 28, 2023, with Saba Capital Management, L.P. (Trades, Portfolio) adding 14,329 shares of ClearBridge Energy MLP Total Return Fund to its portfolio. The shares were acquired at a price of $33.19 each, bringing the firm's total holdings in CTR to 974,727 shares. This acquisition represents 0.62% of the guru's portfolio and 14.15% of the traded company's stock. The transaction had a minor impact of 0.01% on the guru's portfolio.
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 portfolio of 762 stocks valued at $5.24 billion. The firm's 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 primarily invests in the Financial Services and Technology sectors.
Overview of the Traded Company: ClearBridge Energy MLP Total Return Fund
ClearBridge Energy MLP Total Return Fund (CTR, Financial) is a non-diversified, closed-end management investment company based in the United States. The company operates in a single segment and aims to provide a high level of total return consisting of cash distributions and capital appreciation. As of August 1, 2023, the company has a market capitalization of $232.568 million and its stock is trading at $33.77. The company's PE percentage stands at 2.98, indicating its profitability.
Analysis of the Traded Stock
CTR's GF Score is 38/100, suggesting a poor future performance potential. The stock's Balance Sheet Rank, Profitability Rank, and Growth Rank are 4/10, 2/10, and 0/10 respectively. The stock's Momentum Rank is 8/10, indicating a strong momentum. The stock's F Score is 4, suggesting average financial health. The stock's ROE and ROA are 32.62 and 23.49 respectively, indicating a strong return on equity and assets.
Performance Metrics of the Traded Stock
CTR's RSI 5 Day, RSI 9 Day, and RSI 14 Day are 66.97, 67.28, and 66.07 respectively, indicating a strong relative strength index. The stock's Momentum Index 6 - 1 Month and Momentum Index 12 - 1 Month are 2.92 and 6.69 respectively, suggesting a strong momentum. The stock's RSI 14 Day Rank and Momentum Index 6 - 1 Month Rank are 1512 and 591 respectively.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of ClearBridge Energy MLP Total Return Fund shares represents a strategic move that could potentially enhance the firm's portfolio. Despite CTR's low GF Score and Growth Rank, its strong momentum and return on equity and assets could offer potential gains in the future. However, investors should conduct thorough research and consider various factors before making investment decisions.
