On January 17, 2025, Karpus Management, Inc. (Trades, Portfolio) executed a significant transaction involving the Nuveen New York AMT-Free Quality Municipal Income Fund (NRK, Financial). The firm reduced its holdings in NRK by 888,826 shares, which impacted its portfolio by -0.26%. This strategic move reflects the firm's ongoing assessment and adjustment of its investment portfolio to align with its value investing philosophy. The transaction price was $10.51 per share, and following this reduction, Karpus Management, Inc. (Trades, Portfolio) now holds 19,019,342 shares of NRK.
About Karpus Management, Inc. (Trades, Portfolio)
Karpus Management, Inc. (Trades, Portfolio) is a well-regarded investment firm based in Pittsford, NY, known for its focus on value investing. The firm manages an equity portfolio valued at $3.6 billion, with top holdings in Vanguard S&P 500 ETF (VOO, Financial) and BlackRock Municipal Income Fund Inc (MUI, Financial). Karpus Management, Inc. (Trades, Portfolio) has a diversified portfolio with a strong emphasis on financial services and healthcare sectors. The firm's investment strategy is centered around identifying undervalued opportunities in the market, which is evident in its top holdings.
Nuveen New York AMT-Free Quality Municipal Income Fund Overview
Nuveen New York AMT-Free Quality Municipal Income Fund is a closed-end investment company with a market capitalization of $917.716 million. The fund's primary objective is to provide income that is exempt from federal, New York State, and New York City taxes. It achieves this by investing in tax-exempt municipal bonds that are believed to be underrated or undervalued. NRK's investment strategy focuses on enhancing portfolio value relative to the municipal bond market. The fund's current stock price is $10.52, with a GF Score of 42/100, indicating poor future performance potential.
Transaction Details and Impact
The recent transaction saw Karpus Management, Inc. (Trades, Portfolio) reducing its position in NRK to 5.57% of its portfolio. Despite the reduction, NRK still constitutes 21.80% of the firm's holdings in the stock. The transaction reflects a strategic decision by the firm to adjust its exposure to NRK while maintaining a significant stake in the fund. The stock has experienced a 0.1% gain since the transaction, indicating a slight positive market reaction.
Financial Metrics and Performance of NRK
NRK's current stock price is $10.52, with a PE ratio of 11.31. The stock has experienced a -29.87% change since its IPO. The fund's balance sheet rank is 5/10, and its profitability rank is 3/10, indicating moderate financial strength and low profitability. The growth rank is 0/10, suggesting limited growth potential. NRK's return on equity (ROE) is 7.82, and return on assets (ROA) is 4.72, with respective ranks of 816 and 851.
Market Sentiment and Momentum
NRK's RSI 14 Day is 50.26, indicating a neutral market sentiment. The stock's momentum index over six months is -4.80, with a momentum rank of 7/10, suggesting moderate momentum in the asset management industry. This reflects a balanced view of the stock's potential movement in the near term.
Analysis of the Transaction's Influence
The reduction in Karpus Management, Inc. (Trades, Portfolio)'s holdings in NRK signifies a strategic reallocation within its portfolio. While the firm has decreased its stake, NRK remains a significant part of its holdings, indicating continued confidence in the fund's long-term potential. The transaction's impact on the firm's portfolio is relatively minor at -0.26%, suggesting a calculated adjustment rather than a major shift in investment strategy. This move aligns with the firm's value investing approach, focusing on optimizing returns while managing risk.
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.
