Saba Capital Management, L.P. Boosts Stake in ClearBridge Energy Midstream Opportunity Fund Inc
Overview of the Transaction
On October 31, 2023, Saba Capital Management, L.P. (Trades, Portfolio) added 100,428 shares of ClearBridge Energy Midstream Opportunity Fund Inc (NYSE:EMO) to its portfolio. This transaction increased the firm's total holdings in EMO to 2,794,917 shares, representing a 3.73% change in shares. The trade was executed at a price of $31.24 per share, making a 0.08% impact on the firm's portfolio. The firm's current position in EMO now stands at 2.28%, with the traded stock accounting for 21.85% of the guru's holdings.
Profile of Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, is known for its strategic investment philosophy. The firm manages an equity portfolio worth $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.
Insight into ClearBridge Energy Midstream Opportunity Fund Inc
ClearBridge Energy Midstream Opportunity Fund Inc (NYSE:EMO) is a non-diversified, closed-end management investment company based in the USA. The company, which operates in a single segment, aims to provide long-term investors with a high level of total return with an emphasis on cash distributions. As of November 1, 2023, the company has a market capitalization of $397.94 million. The stock is currently trading at $31.12, with a PE percentage of 0.00, indicating that the company is at a loss. The GF Value of the stock is not available, hence the stock cannot be evaluated for its GF Valuation.
Analysis of the Guru's Trade
The trade was executed at a price of $31.24 per share, with the total shares held by the guru now standing at 2,794,917. This represents a 2.28% position in the guru's portfolio, with the traded stock accounting for 21.85% of the guru's holdings.
Evaluation of the Stock's Performance
Since the transaction, the stock has seen a slight decrease of 0.38%. Since its IPO in 2011, the stock has declined by 67.09%. However, the stock has seen a year-to-date increase of 12.79%. The stock's GF Score stands at 39/100, indicating poor future performance potential. The stock's Financial Strength is ranked 5/10, while its Profitability Rank is 1/10. The stock's Growth Rank is 0/10, indicating no growth in the past three years.
Examination of the Stock's Financial Health
The stock's Piotroski F-Score is 4, indicating average financial health. The Altman Z score and cash to debt ratio are not available. The stock's ROE and ROA stand at -7.94 and -5.44 respectively, ranking 1343 and 1337.
Analysis of the Stock's Growth
The stock's gross margin growth, operating margin growth, three-year revenue growth, EBITDA growth, and earning growth over the past three years are all not available, indicating no growth in these areas.
Evaluation of the Stock's Momentum
The stock's RSI 5 day, RSI 9 day, and RSI 14 day stand at 36.91, 42.32, and 45.18 respectively. The stock's momentum index 6 - 1 month and momentum index 12 - 1 month stand at 12.13 and 4.68 respectively, ranking 253 and 1235.
In conclusion, this transaction by Saba Capital Management, L.P. (Trades, Portfolio) has increased its stake in ClearBridge Energy Midstream Opportunity Fund Inc, despite the stock's poor performance and growth indicators. This suggests that the guru sees potential in the stock that may not be reflected in its current metrics.
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.
This article first appeared on GuruFocus.
