On September 14, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, added 10,434 shares to its holdings in Blackrock CA Muni Income Tr (BFZ, Financial). The shares were acquired at a price of $10.92 each, bringing the firm's total holdings in BFZ to 4,305,488 shares. This transaction represents a 0.24% change in the firm's holdings and a 1.23% position in its portfolio. Furthermore, Saba Capital Management, L.P. (Trades, Portfolio) now holds a 14.13% stake in BFZ.
About Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio) is an investment firm located at 405 Lexington Avenue, New York. The firm manages an equity portfolio worth $3.84 billion, spread across 624 stocks. Its 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 investments are primarily concentrated in the Financial Services and Technology sectors.
Overview of Blackrock CA Muni Income Tr
Blackrock CA Muni Income Tr (BFZ, Financial) is a closed-end management investment company based in the United States. The company's primary objective is to provide current income exempt from regular U.S. federal income tax. It achieves this by investing a majority of its total assets in municipal bonds. BFZ operates in a single segment and has a market capitalization of $330.619 million. The company went public on July 27, 2001.
Performance and Valuation of BFZ
As of September 19, 2023, BFZ's stock price stands at $10.85. The company's PE percentage is not applicable as it is currently operating at a loss. According to GuruFocus's valuation, BFZ is modestly undervalued with a GF Value of $15.06, resulting in a price to GF Value ratio of 0.72. Since the transaction, the stock has seen a -0.64% change in price and a -0.46% year-to-date change.
Financial Health and Industry Performance of BFZ
BFZ has a Financial Strength rank of 5/10 and a Profitability Rank of 2/10. The company's Growth Rank is not applicable due to insufficient data. However, it has a high GF Value Rank of 9/10 and a Momentum Rank of 7/10. The company's Piotroski F-Score is 4, and its Altman Z Score is not applicable. In the Asset Management industry, BFZ has a return on equity (ROE) of -9.92% and a return on assets (ROA) of -6.07%.
BFZ's Momentum
BFZ's 5-day, 9-day, and 14-day relative strength index (RSI) are 15.19, 21.86, and 25.49 respectively. The company's 6 - 1 month momentum index is -0.18, and its 12 - 1 month momentum index is 4.90.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of BFZ shares represents a significant addition to its portfolio. Despite BFZ's current financial performance and industry standing, the firm's investment could be based on the stock's undervaluation and potential for future growth. This transaction provides valuable insights for value investors, highlighting the importance of thorough analysis and strategic decision-making in investment management.
