Saba Capital Management, L.P. Boosts Stake in ClearBridge MLP & Midstream Fund Inc.
On October 31, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, added 19,342 shares of ClearBridge MLP & Midstream Fund Inc. (NYSE:CEM) to its portfolio. The transaction, which was executed at a trade price of $34.14 per share, increased the firm's total holdings in CEM to 1,812,544 shares. This addition represents a 1.08% change in the firm's holdings and has a 0.02% impact on its portfolio. The traded stock now constitutes 1.61% of the firm's portfolio, with the firm holding a 13.64% stake in the traded stock.
About 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 renowned investment firm with a diverse portfolio. The firm's equity stands at $3.84 billion, spread across 624 stocks. 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.
Details of the Transaction
The transaction saw Saba Capital Management, L.P. (Trades, Portfolio) acquire an additional 19,342 shares of ClearBridge MLP & Midstream Fund Inc. at a trade price of $34.14 per share. This acquisition increased the firm's total holdings in the traded stock to 1,812,544 shares, representing 1.61% of its portfolio. The firm now holds a 13.64% stake in the traded stock.
Overview of ClearBridge MLP & Midstream Fund Inc.
ClearBridge MLP & Midstream Fund Inc. (NYSE:CEM), a US-based non-diversified, closed-end management investment company, primarily invests in energy master limited partnerships (MLPs) and energy midstream entities. The company, which operates in a single segment, was listed on June 25, 2010, and has a market capitalization of $457.719 million. The company's stock is currently trading at $34.43 per share.
Analysis of ClearBridge MLP & Midstream Fund Inc.'s Stock Performance
ClearBridge MLP & Midstream Fund Inc.'s stock has seen a gain of 0.85% since the transaction. However, the stock has declined by 65.57% since its Initial Public Offering (IPO). Year-to-date, the stock has gained 6.56%. The company's GF Score stands at 41/100, indicating a poor future performance potential.
Evaluation of ClearBridge MLP & Midstream Fund Inc.'s Financial Health
ClearBridge MLP & Midstream Fund Inc.'s financial strength is ranked 5/10, while its profitability rank is 2/10. The company's growth rank and GF Value Rank are both 0/10, indicating a lack of growth and value. The company's Piotroski F-Score is 4, and its Altman Z score is 0.00, suggesting financial instability.
Analysis of ClearBridge MLP & Midstream Fund Inc.'s Industry Performance
ClearBridge MLP & Midstream Fund Inc. operates in the Asset Management industry. The company's Return on Equity (ROE) is -8.16, and its Return on Assets (ROA) is -5.61. The company's gross margin growth, operating margin growth, revenue growth, and EBITDA growth are all 0.00, indicating a lack of growth in these areas.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of ClearBridge MLP & Midstream Fund Inc. shares represents a strategic move to increase its stake in the company. However, given ClearBridge MLP & Midstream Fund Inc.'s poor financial health and lack of growth, the transaction's impact on the firm's portfolio and the stock's performance remains to be seen. Value investors should monitor this situation closely.
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