On August 9, 2023, SIT Investment Associates Inc., a renowned investment management firm, expanded its portfolio by acquiring an additional 91,091 shares in First Trust Mortgage Income Fund (FMY, 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 acquisition.
Details of the Transaction
The transaction took place on August 9, 2023, with SIT Investment Associates Inc. adding 91,091 shares of First Trust Mortgage Income Fund to its portfolio, boosting the holding to 2,072,056 shares. The shares were traded at a price of $11.26 each. This acquisition had a 0.03% impact on the guru's portfolio, increasing the firm's total holdings in FMY to 49.18%. The traded stock now represents 0.64% of the guru's portfolio.
Profile of the Guru: SIT Investment Associates Inc.
SIT Investment Associates Inc., based in Minneapolis, was established in 1981 by Eugene C. Sit. The firm has grown significantly over the years, with its assets under management currently valued at $3.66 billion. The firm's investment philosophy is rooted in quantitative and fundamental methodologies, with a focus on fixed income and public equity markets on a global scale. The firm's 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 Stock: First Trust Mortgage Income Fund
First Trust Mortgage Income Fund (FMY, Financial) is a diversified, closed-end management investment company based in the United States. The company's primary objective is to seek a high level of current income while preserving capital. The company's market capitalization stands at $47.769 million, with a current stock price of $11.3383. The company's PE Percentage is 89.99, indicating a profitable operation. However, according to GuruFocus's GF Valuation, the stock is modestly overvalued with a GF Value of 8.76 and a Price to GF Value of 1.29. The company's year-to-date price change ratio is 0.34, and its price change since its Initial Public Offering (IPO) is -43.31. 
Analysis of the Traded Stock's Performance
First Trust Mortgage Income Fund's performance is evaluated using several metrics. The company's GF Score is 43/100, indicating a potential for poor future performance. The company's Financial Strength is ranked 8/10, while its Profitability Rank is 2/10. The company's Growth Rank is not available due to not enough data. The company's GF Value Rank is 1/10, and its Momentum Rank is 2/10. The company's Piotroski F-Score is 4, indicating a moderate financial situation.
Conclusion
In conclusion, SIT Investment Associates Inc.'s recent acquisition of additional shares in First Trust Mortgage Income Fund is a strategic move that expands its investment portfolio. The transaction's impact on the guru's portfolio is minimal, but it increases the firm's stake in FMY significantly. Despite the modest overvaluation and low growth rank of FMY, the firm's decision to invest may be based on other factors such as the company's financial strength and potential for future performance. As always, investors are advised to conduct their own comprehensive research before making investment decisions.
