Saba Capital Management, L.P. Increases Stake in Miller/Howard High Income Equity Fund
On August 16, 2023, Saba Capital Management, L.P., a renowned investment firm, executed a significant transaction involving the Miller/Howard High Income Equity Fund (NYSE:HIE). This article provides an in-depth analysis of the transaction, the profiles of the guru and the traded company, and the performance and valuation of the traded stock.
Details of the Transaction
The transaction saw Saba Capital Management, L.P. add 25,229 shares of Miller/Howard High Income Equity Fund to its portfolio. The shares were acquired at a price of $9.91 each. This trade had a minor impact of 0.01% on the guru's portfolio. Following this transaction, the firm now holds a total of 2,374,849 shares in the traded company, representing 0.61% of its portfolio and 12.71% of the traded company's total shares.
Profile of the Guru: Saba Capital Management, L.P.
Saba Capital Management, L.P., located at 405 Lexington Avenue, New York, NY 10174, is a prominent investment firm. The firm manages a portfolio of 624 stocks, with a total equity of $3.84 billion. Its top holdings include Templeton Global Income Fund (NYSE:GIM), BlackRock Capital Allocation Trust (NYSE:BCAT), BlackRock Health Sciences Trust II (NYSE:BMEZ), BlackRock Innovation & Growth Tr (NYSE:BIGZ), and BlackRock ESG Capital Allocation Trust (NYSE:ECAT). The firm's investments are primarily concentrated in the Financial Services and Technology sectors.
Overview of the Traded Stock: Miller/Howard High Income Equity Fund
Miller/Howard High Income Equity Fund (NYSE:HIE), based in the USA, is a closed-end, diversified management investment company. The fund's primary investment objective is to seek a high level of current income with a secondary objective of capital appreciation. The company operates in a single segment and has a market capitalization of $185.598 million. The current price of the stock is $9.93, with a PE percentage of 46.40. The GF Value of the stock could not be evaluated due to insufficient data.
Analysis of the Traded Stock's Performance and Valuation
Since its IPO, the stock has seen a decrease of 27.36% in its price. The year-to-date performance of the stock is -4.79%. The stock's GF Score is 40/100, indicating a poor future performance potential. The stock's balance sheet rank is 4/10, indicating a moderate financial strength. The profitability rank of the stock is 2/10, suggesting low profitability. The growth rank of the stock is 0/10, indicating no growth.
Examination of the Traded Stock's Financial Health and Growth
The stock's Piotroski F-Score is 5, suggesting an average financial health. The Altman Z score of the stock is 0.00, and the cash to debt ratio is 0.01, indicating a high debt level. The stock's industry is Asset Management, with a ROE of 1.90 and a ROA of 1.33. The gross margin growth of the stock is 0.00, and the operating margin growth is also 0.00.
Evaluation of the Traded Stock's Industry Performance and Momentum
The stock's RSI 5 Day is 21.40, RSI 9 Day is 30.20, and RSI 14 Day is 37.83. The Momentum Index 6 - 1 Month is -8.78, and the Momentum Index 12 - 1 Month is -4.64. These figures suggest a bearish momentum for the stock.
Conclusion
In conclusion, Saba Capital Management, L.P.'s recent acquisition of shares in Miller/Howard High Income Equity Fund represents a strategic move to increase its stake in the company. Despite the traded stock's poor performance and low growth potential, the guru's increased investment could indicate a long-term investment strategy. However, investors should conduct their own research and consider the stock's financial health, industry performance, and momentum before making investment decisions.
This article first appeared on GuruFocus.
