On July 12, 2023, SIT Investment Associates Inc, a renowned investment management firm, made a significant move in the stock market by acquiring a substantial stake in Neuberger Berman High Yield Strategies Fund. 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 move.
Details of the Transaction
SIT Investment Associates Inc purchased 2,043,847 shares of Neuberger Berman High Yield Strategies Fund on July 12, 2023. This transaction had a 0.42% impact on the guru's portfolio. The shares were bought at a price of $7.59 each, and as of the date of this article, the stock price stands at $7.64, indicating a gain of 0.66% since the transaction.
Profile of the Guru: SIT Investment Associates Inc
Established in 1981 by Eugene C. Sit, SIT Investment Associates Inc is a Minneapolis-based investment management company. The firm, which started with $1 million in capital and eight people, has grown significantly over the years. It now manages over $6.6 billion in total assets spread across 532 stocks, with a significant focus on the financial services and technology sectors. The firm's top holdings include Cornerstone Strategic Value Fund Inc (CLM, Financial), Apple Inc (AAPL, Financial), Microsoft Corp (MSFT, Financial), Putnam Premier Income Trust (PPT, Financial), and Blackrock Credit Allocation Income Trust (BTZ, Financial).
Overview of the Traded Company: Neuberger Berman High Yield Strategies Fund
Neuberger Berman High Yield Strategies Fund is a closed-end management investment company that manages equity, fixed income, private equity, and hedge fund strategies on behalf of institutions, advisors, and individual investors worldwide. The company, which operates in a single segment, has a market capitalization of $148.572 million. Since its IPO on July 29, 2003, the company's stock price has decreased by 49.07%.
Analysis of the Traded Stock
As per GuruFocus, the stock of Neuberger Berman High Yield Strategies Fund is significantly overvalued with a GF Value of 2.20 and a Price to GF Value ratio of 3.47. The stock's GF Score stands at 49, suggesting a poor future performance potential. The stock's F Score is 2, indicating weak financial health, and its Z Score is 0.00, suggesting potential bankruptcy risk.
Performance of the Traded Stock
The stock's year-to-date performance stands at -10.43%. Its momentum indices and RSI values suggest a mixed performance, with a 5-day RSI of 68.57, a 9-day RSI of 53.66, and a 14-day RSI of 44.38. The stock's rank in terms of ROE and ROA is 907 and 880, respectively.
Conclusion
In conclusion, SIT Investment Associates Inc's acquisition of a stake in Neuberger Berman High Yield Strategies Fund is a significant move that adds a new dimension to its portfolio. Despite the traded stock's poor performance indicators and overvaluation, the guru's investment could be based on long-term growth prospects or other strategic considerations. As always, investors are advised to conduct their own comprehensive research before making investment decisions.
