On October 25, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, increased its holdings in BlackRock ESG Capital Allocation Trust (ECAT, Financial). The firm added 120,264 shares to its portfolio, bringing its total holdings to 17,469,372 shares. This transaction represents a 0.69% change in the firm's holdings and a 0.04% impact on its portfolio. The shares were purchased at a price of $14.31 each.
Details of the Transaction
The transaction increased Saba Capital Management's position in ECAT to 6.52% of its portfolio. The firm now holds 17.06% of the total shares of ECAT. The trade price of $14.31 is slightly higher than the current stock price of $14.16, indicating a -1.05% change since the transaction.
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 an investment firm with a diverse portfolio. 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 equity stands at $3.84 billion, with a strong focus on the Financial Services and Technology sectors.
Analysis of the Guru's Trade
The recent acquisition of ECAT shares by Saba Capital Management, L.P. (Trades, Portfolio) has a significant impact on the firm's portfolio. The firm's current position in ECAT represents 6.52% of its portfolio, indicating a strong belief in the stock's potential.
Overview of BlackRock ESG Capital Allocation Trust
BlackRock ESG Capital Allocation Trust (ECAT, Financial) is a non-diversified, closed-end management investment company based in the USA. The company's objective is to provide total return and income through a combination of current income, current gains, and long-term capital appreciation. ECAT operates in a single segment and has a market capitalization of $1.45 billion. The company's PE percentage stands at 6.03, indicating its profitability. However, due to insufficient data, the GF Valuation cannot be evaluated.
Analysis of ECAT's Performance
ECAT's performance since its IPO has seen a decrease of -29.2%. However, the stock has gained 4.5% year-to-date. The company's GF Score is 21/100, indicating poor future performance potential. The company's Financial Strength is ranked 7/10, while its Profitability Rank is 1/10. The company's Growth Rank is 0/10, indicating no growth.
Evaluation of ECAT's Financial Health
ECAT's financial health is evaluated using various metrics. The company's Altman Z score is 0.00, indicating potential financial distress. The company's cash to debt rank is 1, suggesting a high level of debt. The company operates in the Asset Management industry and has a ROE of 13.55 and a ROA of 12.30.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of ECAT shares represents a significant addition to its portfolio. Despite ECAT's poor growth rank and potential financial distress, the firm's investment suggests a belief in the stock's potential. This transaction provides valuable insights for value investors, highlighting the importance of thorough analysis and strategic decision-making in investment.
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.
