Saba Capital Management, L.P. Increases Stake in ClearBridge Energy Midstream Opportunity Fund Inc
On October 2, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, added 35,066 shares of ClearBridge Energy Midstream Opportunity Fund Inc (NYSE:EMO) to its portfolio. This article provides an in-depth analysis of this transaction, the profiles of both the guru and the traded company, and the potential implications for investors.
Details of the Transaction
The transaction saw Saba Capital Management, L.P. (Trades, Portfolio) acquire an additional 35,066 shares of ClearBridge Energy Midstream Opportunity Fund Inc at a traded price of $31.37 per share. This acquisition increased the firm's total holdings in EMO to 2,578,754 shares, representing 20.16% of the guru's holdings in the traded stock and 2.11% of the guru's portfolio. The impact of this transaction on the firm's portfolio was 0.03%.
Profile of Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio), located at 405 Lexington Avenue, New York, NY 10174, is a firm with a diverse portfolio of 624 stocks. The firm's equity stands at $3.84 billion, with a strong focus on the Financial Services and Technology sectors. 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).
Overview of ClearBridge Energy Midstream Opportunity Fund Inc
ClearBridge Energy Midstream Opportunity Fund Inc (NYSE:EMO), a USA-based company, is a non-diversified, closed-end management investment company. The company, which went public on June 10, 2011, aims to provide long-term investors with a high level of total return with an emphasis on cash distributions. As of October 4, 2023, the company's market cap stands at $387.071 million. The company's GF Score is 38/100, indicating a poor future performance potential.
Analysis of the Stock's Performance
Since the transaction, EMO's stock price has decreased by 3.51% to $30.27. The stock has seen a decrease of 67.99% since its IPO and has gained 9.71% year-to-date. The stock's momentum, as indicated by its RSI 5 Day, RSI 9 Day, and RSI 14 Day, stands at 13.11, 25.71, and 34.01 respectively.
Evaluation of the Stock's Financial Health
EMO's financial health, as indicated by its balance sheet rank of 5/10, profitability rank of 1/10, and growth rank of 0/10, is relatively weak. The stock's Piotroski F-Score is 4, and its Altman Z score is 0.00, indicating potential financial distress. The stock's cash to debt ratio is also 0.00, suggesting a high level of debt.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of additional shares in ClearBridge Energy Midstream Opportunity Fund Inc represents a significant investment in the company. However, given EMO's weak financial health and poor future performance potential, investors should exercise caution. As always, it is crucial to conduct thorough research and consider various factors before making investment decisions.
This article first appeared on GuruFocus.
