On August 9, 2023, SIT Investment Associates Inc., a Minneapolis-based investment management firm, increased its holdings in MFS Government Markets Income Trust (MGF, Financial). This article provides an in-depth analysis of the transaction, the profiles of the guru and the traded company, and the potential implications for value investors.
Details of the Transaction
The transaction took place on August 9, 2023, with SIT Investment Associates Inc. adding 758,974 shares to its holdings in MGF. The trade was executed at a price of $3.2 per share, resulting in a 15.81% change in shares. This acquisition had a 0.07% impact on the guru's portfolio and increased the firm's total holdings in MGF to 5,559,084 shares, representing 0.49% of its portfolio and 17.05% of MGF's total shares.
Profile of the Guru: SIT Investment Associates Inc.
SIT Investment Associates Inc. is an investment management firm established in 1981 by Eugene C. Sit. The firm, largely owned by the Sit family, has grown to manage over $6.6 billion in total assets across 67 accounts. The firm's investment philosophy is rooted in quantitative and fundamental methodologies, with a focus on fixed income and public equity markets globally. Its top holdings include Cornerstone Strategic Value Fund Inc (CLM, Financial), Apple Inc (AAPL, Financial), Microsoft Corp (MSFT, Financial), Putnam Premier Income Trust (PPT, Financial), and Blackrock Credit Allocation Income Trust (BTZ, Financial). The firm's primary sectors of investment are Financial Services and Technology. 
Overview of the Traded Company: MFS Government Markets Income Trust
MFS Government Markets Income Trust is a diversified, closed-end management investment company based in the United States. The company's objective is to seek high current income by investing primarily in U.S. and foreign government securities. The company's market capitalization stands at $104.312 million, with a current stock price of $3.2. However, the company's GF Value and PE Percentage are currently not available due to insufficient data. 
Analysis of the Traded Stock
The stock's GF Score is 36/100, indicating poor future performance potential. The stock has seen a year-to-date price change of -3.32% and a price change of -68% since its Initial Public Offering (IPO). The stock's Momentum Rank is 4/10, suggesting a relatively weak momentum in the market.
Financial Health of the Traded Company
MFS Government Markets Income Trust has a Financial Strength rank of 8/10, indicating a strong balance sheet. However, its Profitability Rank is 1/10, and its Growth Rank is 0/10, suggesting poor profitability and growth prospects. The company's Return on Equity (ROE) and Return on Assets (ROA) are -2.47 and -2.29, respectively.
Performance of the Traded Stock
The stock's RSI 5 Day is 51.75, RSI 9 Day is 47.64, and RSI 14 Day is 46.69. The stock's Momentum Index 6 - 1 Month is -4.73, and Momentum Index 12 - 1 Month is -11.29, indicating a negative momentum over the past month.
Conclusion
In conclusion, SIT Investment Associates Inc.'s recent acquisition of MFS Government Markets Income Trust shares represents a significant addition to its portfolio. Despite the traded company's poor profitability and growth prospects, the firm's decision to increase its stake could be based on other factors not captured in the available data. As always, investors are advised to conduct their own comprehensive analysis before making investment decisions.
