Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, has recently expanded its portfolio with the addition of 11609705 shares in BlackRock Health Sciences Trust II (BMEZ, Financial). The transaction, which took place on October 31, 2023, further solidifies the firm's position in the financial services and technology sectors. Saba Capital Management, L.P. (Trades, Portfolio) is known for its strategic investment philosophy, focusing on undervalued assets and leveraging market inefficiencies to generate returns.
Details of the Transaction
The transaction involved the acquisition of 11609705 shares of BlackRock Health Sciences Trust II at a trade price of $13.04 per share. This addition resulted in a 1.16% change in the firm's holdings, impacting the portfolio by 0.05%. Following the transaction, BlackRock Health Sciences Trust II now constitutes 3.95% of the firm's portfolio, with Saba Capital Management, L.P. (Trades, Portfolio) holding a 10.75% stake in the company.
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 prominent investment firm with a portfolio comprising 624 stocks. The firm's top holdings include Templeton Global Income Fund (GIM, Financial), BlackRock Capital Allocation Trust (BCAT, Financial), BlackRock Health Sciences Trust II (BMEZ, Financial), BlackRock Innovation & Growth Tr (BIGZ, Financial), and BlackRock ESG Capital Allocation Trust (ECAT, Financial). With an equity of $3.84 billion, the firm primarily invests in the financial services and technology sectors.
Overview of BlackRock Health Sciences Trust II
BlackRock Health Sciences Trust II (BMEZ, Financial) is a US-based closed-end management investment company. The company's primary objective is to provide total return through a combination of current income and long-term capital appreciation. It achieves this by investing at least 80% of its total assets in equity securities of energy and natural resources companies and equity derivatives with exposure to the energy and natural resources industry. The company operates in a single segment and has a market capitalization of $1.41 billion. As of November 1, 2023, the stock price stands at $13.09, reflecting a PE percentage of 26.77. The stock has experienced a year-to-date price change ratio of -16.57% and a price change of -34.58% since its IPO.
Analysis of BlackRock Health Sciences Trust II's Financial Health
BlackRock Health Sciences Trust II has a Financial Strength rank of 8/10, indicating a strong balance sheet. However, its Profitability Rank is relatively low at 2/10, and its Growth Rank is currently not applicable. The company's Piotroski F-Score is 2, suggesting that the company's financial situation is weak. The Altman Z score is also not applicable, indicating that the company's bankruptcy risk cannot be evaluated. The company's cash to debt rank is 1, suggesting a high level of debt relative to cash.
Performance of BlackRock Health Sciences Trust II in the Asset Management Industry
In the asset management industry, BlackRock Health Sciences Trust II has a return on equity (ROE) of 9.36% and a return on assets (ROA) of 9.12%. However, the company's gross margin growth, operating margin growth, and 3-year revenue, EBITDA, and earning growth are currently not applicable.
BlackRock Health Sciences Trust II's Stock Predictability and Momentum
BlackRock Health Sciences Trust II's stock predictability is currently not applicable. The stock's RSI 5 day is 9.06, RSI 9 day is 16.15, and RSI 14 day is 20.65. The momentum index 6 - 1 month is -11.32, and the momentum index 12 - 1 month is -7.63.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of BlackRock Health Sciences Trust II shares is a strategic move that aligns with the firm's investment philosophy. Despite the stock's current financial health and performance in the asset management industry, the firm's increased stake in BlackRock Health Sciences Trust II could potentially yield significant returns in the long run. However, investors should closely monitor the stock's performance and financial health to make informed investment decisions.
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.
