Saba Capital Management, L.P. Boosts Position in ClearBridge MLP & Midstream Fund Inc.
On July 28, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a renowned investment firm, increased its position in ClearBridge MLP & Midstream Fund Inc. (NYSE:CEM) to 1,641,792 shares. This article provides an in-depth analysis of this transaction, the profiles of the guru and the traded company, and the potential implications of this trade.
Details of the Transaction
The transaction took place on July 27 and 28, with Saba Capital Management, L.P. (Trades, Portfolio) adding 30,917 shares of ClearBridge MLP & Midstream Fund Inc. to its portfolio at an average trade price of $36.72 per share. This trade had a 0.02% impact on the guru's portfolio and increased the firm's total holdings in the traded stock to 1,641,792 shares, representing 1.15% of its portfolio and 12.35% of the guru's holdings in the traded stock.
Profile of the Firm
Saba Capital Management, L.P. (Trades, Portfolio), located at 405 Lexington Avenue, New York, NY 10174, is a prominent investment firm with a portfolio of 762 stocks. The firm's 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 equity stands at $5.24 billion, with a strong focus on the Financial Services and Technology sectors.
Overview of the Traded Stock
ClearBridge MLP & Midstream Fund Inc. (NYSE:CEM), a non-diversified, closed-end management investment company based in the USA, aims to provide a high level of total return with an emphasis on cash distributions. The company primarily invests in energy master limited partnerships (MLPs) and energy midstream entities. The company's market capitalization stands at $499.463 million, with a current stock price of $37.57. Despite this, the company is operating at a loss and thus, does not have a meaningful price-earnings ratio.
Stock Valuation and Performance
Due to insufficient data, the GF Valuation and GF Value of the stock cannot be evaluated. However, since the transaction, the stock has gained 2.31%, despite a -62.43% change since its IPO on June 25, 2010. The stock has also seen a year-to-date price change ratio of 16.28%.
Stock's Financial Health and Future Performance Potential
The stock's GF Score stands at 36/100, indicating poor future performance potential due to lack of data. The stock's balance sheet rank and profitability rank are 4/10 and 1/10 respectively, suggesting a need for improvement in these areas.
Stock's Momentum and Industry Position
The stock's RSI 5 Day, RSI 9 Day, and RSI 14 Day stand at 72.84, 69.82, and 67.08 respectively, with a Momentum Index of -3.59 for 6 - 1 Month and 3.77 for 12 - 1 Month. The stock's RSI 14 Day Rank and Momentum Index 6 - 1 Month Rank are 1543 and 919 respectively, indicating a strong momentum in the market.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of shares in ClearBridge MLP & Midstream Fund Inc. represents a strategic move that could potentially enhance the firm's portfolio. However, the traded stock's financial health and future performance potential suggest a need for careful monitoring. As of August 1, 2023, all data and rankings are accurate and are based on the provided relative data.
This article first appeared on GuruFocus.
