In a recent transaction, Saba Capital Management, L.P. (Trades, Portfolio), a renowned investment firm, has added 1410970 shares of Blackrock Muniyield Pennsylvania Quality Fund (MPA, Financial) to its portfolio. This article will delve into the details of this transaction, provide an overview of Saba Capital Management, L.P. (Trades, Portfolio), and analyze the performance and financial health of Blackrock Muniyield Pennsylvania Quality Fund.
Profile: 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 diverse portfolio. The firm's investment philosophy is centered around a balanced approach, with a focus on both equity and fixed income investments. As of the latest data, the firm holds 762 stocks with a total equity of $5.24 billion. 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). The firm's top sectors are Financial Services and Technology.
Transaction Details
The transaction took place on June 29, 2023, with Saba Capital Management, L.P. (Trades, Portfolio) adding 6022 shares of Blackrock Muniyield Pennsylvania Quality Fund (MPA, Financial) at a price of $11.7 per share. This transaction increased the firm's total holdings in MPA to 1410970 shares, representing 0.32% of the firm's portfolio and 10.73% of MPA's total shares.
Overview: Blackrock Muniyield Pennsylvania Quality Fund
Blackrock Muniyield Pennsylvania Quality Fund (MPA, Financial) is a U.S.-based closed-end fund with a market cap of $153.418 million. The fund's primary objective is to provide shareholders with current income exempt from U.S. federal and Pennsylvania income taxes. As of July 10, 2023, the fund's stock price stands at $11.67. According to GuruFocus's valuation, the stock is significantly undervalued with a GF Value of $35.38, indicating a price to GF Value ratio of 0.33. The stock has a GF Score of 54, suggesting a moderate future performance potential.
Financial Health and Performance of MPA
MPA's financial health and performance metrics provide a mixed picture. The fund has a rank balance sheet score of 5 and a rank profitability score of 2. However, the fund's rank growth score is not applicable due to insufficient data. The fund's F Score is 4, indicating a moderate financial health. The fund's ROE and ROA stand at -11.33% and -6.94% respectively, with rank ROE and rank ROA of 1162 and 1096 respectively.
MPA's Industry and Predictability
MPA operates in the Asset Management industry. The fund's predictability rank is not available due to insufficient data. The fund's RSI 5 Day, RSI 9 Day, and RSI 14 Day stand at 37.44, 44.94, and 49.52 respectively. The fund's momentum index for 6 - 1 month is 4.83, while for 12 - 1 month, it stands at -9.71.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of MPA shares represents a strategic move in line with the firm's investment philosophy. Despite MPA's mixed financial performance, the fund's significantly undervalued status and moderate GF Score suggest potential for future growth. This transaction is likely to have a positive impact on both the guru's portfolio and MPA's stock performance.
