Saba Capital Management, L.P. Increases Stake in BlackRock Capital Allocation Trust
On October 27, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based firm, added 35,201 shares of BlackRock Capital Allocation Trust (NYSE:BCAT) to its portfolio. The shares were acquired at a trade price of $13.8 per share, bringing the firm's total holdings in BCAT to 11,127,894 shares. This transaction represents a 0.32% change in the firm's holdings and has a 0.01% impact on its portfolio. The firm now holds a 10.29% stake in BCAT, making it a significant part of its investment strategy.
About Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio) is a firm with a strong focus on the Financial Services and Technology sectors. With an equity of $3.84 billion, the firm holds 624 stocks in its portfolio. 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 investment philosophy is centered around identifying undervalued assets and capitalizing on market inefficiencies.
BlackRock Capital Allocation Trust: A Brief Overview
BlackRock Capital Allocation Trust (NYSE:BCAT) is a non-diversified, closed-end management investment company based in the USA. The company, which went public on September 25, 2020, aims to provide total return and income through a combination of current income, current gains, and long-term capital appreciation. With a market capitalization of $1.5 billion, BCAT operates in a single segment. The company's stock is currently priced at $13.89, with a PE Percentage of 10.12.
Performance of BlackRock Capital Allocation Trust's Stock
Since its IPO, BCAT's stock has decreased by 31.31%. The Year-to-Date price change ratio stands at -1.07. However, since the transaction executed by Saba Capital Management, L.P. (Trades, Portfolio), the stock has gained 0.65%. The company's GF Score is 41/100, indicating poor future performance potential.
Financial Health of BlackRock Capital Allocation Trust
BCAT's Financial Strength is ranked 8/10, while its Profitability Rank is 1/10. The company's Cash to Debt ratio is 148.19, ranking it 639th. However, its Piotroski F-Score is 5, indicating a stable financial situation.
BlackRock Capital Allocation Trust's Position in the Industry
In the Asset Management industry, BCAT has a Return on Equity (ROE) of 7.92 and a Return on Assets (ROA) of 6.94, ranking it 486th and 408th respectively. The company's RSI 14 Day Rank is 853, and its Momentum Index 6 - 1 Month Rank is 885, indicating a relatively weak momentum in the market.
Conclusion
The recent transaction by Saba Capital Management, L.P. (Trades, Portfolio) reflects its confidence in BlackRock Capital Allocation Trust's potential despite its current performance. The firm's increased stake in BCAT could influence the stock's performance and the firm's portfolio in the future. As of October 31, 2023, all data and rankings are accurate and are based on the provided relative data.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
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