On August 2, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, added 121,490 shares of DWS Strategic Municipal Income Trust (KSM, Financial) to its portfolio. This transaction is of significant interest to value investors, as it provides insights into the investment strategies of leading market players. This article will delve into the details of the transaction, the profiles of the guru and the traded company, and an analysis of the stock's performance.
Details of the Transaction
DWS Strategic Municipal Income Trust, a closed-end, diversified management investment company, was the subject of the transaction. The firm's investment objective is to provide a high level of current income exempt from federal income tax, achieved by investing in a portfolio of tax-exempt municipal securities. On August 2, 2023, Saba Capital Management, L.P. (Trades, Portfolio) added 121,490 shares of KSM at a price of $8.45 per share. This transaction increased the firm's total holdings in KSM to 1,156,252 shares, representing 0.19% of its portfolio and 10.32% of KSM's total shares.
Profile of the Guru
Saba Capital Management, L.P. (Trades, Portfolio), located at 405 Lexington Avenue, New York, NY 10174, is an investment firm with a portfolio of 762 stocks, primarily in the Financial Services and Technology sectors. 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's equity is valued at $5.24 billion. 
Overview of the Traded Stock
DWS Strategic Municipal Income Trust (KSM, Financial), based in the USA, operates in the Asset Management industry. The company's market capitalization is $92.443 million, and its stock price as of August 4, 2023, is $8.2509. The company's GF-Score is 37/100, indicating a poor future performance potential. 
Analysis of the Stock's Performance
KSM's Financial Strength is ranked 5/10, while its Profitability Rank is 2/10. The company's Growth Rank is 0/10, indicating no growth in the past three years. The company's GF Value Rank and Momentum Rank are also 0/10 and 5/10, respectively. The company's Piotroski F-Score is 4, and its Altman Z score is 0.00, indicating financial distress.
Evaluation of the Stock's Momentum and Predictability
KSM's RSI 5 Day is 18.23, RSI 9 Day is 29.38, and RSI 14 Day is 36.83. The company's Momentum Index 6 - 1 Month is -2.64, and its Momentum Index 12 - 1 Month is -12.72. The company's RSI 14 Day Rank is 281, and its Momentum Index 6 - 1 Month Rank is 596. The company's predictability rank is not available.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of KSM shares provides valuable insights into the firm's investment strategy. Despite KSM's poor performance indicators, the firm's decision to increase its stake in the company suggests a belief in its potential. However, value investors should conduct their own due diligence before making investment decisions.
