Saba Capital Management, L.P., a prominent investment firm, recently increased its stake in BlackRock (NYSE:BLK) Innovation & Growth Term Trust (NYSE:BIGZ). According to a recent SEC filing, Saba Capital acquired 266,732 shares at a price of $7.96 per share, totaling approximately $2.1 million. This acquisition brings Saba Capital's total holdings in the trust to 58,126,891 shares. The transaction was reported by Boaz Weinstein, a significant owner in the firm.
InvestingPro Insights
Saba Capital Management's recent investment in BlackRock Innovation & Growth Term Trust (NYSE:BIGZ) aligns with some intriguing financial metrics and trends. According to InvestingPro data, BIGZ currently boasts a substantial dividend yield of 13.0%, with the most recent ex-dividend date on November 15, 2024. This high yield could be a key factor in Saba Capital's decision to increase its stake, as it offers a significant income stream for shareholders.
The trust's performance has been notably strong in recent periods, with a year-to-date price total return of 20.17% and a one-year return of 22.39%. These figures suggest a positive momentum that may have attracted Saba Capital's attention. Additionally, BIGZ is trading at 97.09% of its 52-week high, indicating that the trust is near its peak valuation over the past year.
InvestingPro Tips highlight that BIGZ "pays a significant dividend to shareholders," which corroborates the high yield data and may explain Saba Capital's increased investment. However, another tip notes that the trust "suffers from weak gross profit margins," which investors should consider alongside the attractive dividend.
For a more comprehensive analysis, InvestingPro offers 4 additional tips that could provide deeper insights into BIGZ's financial health and prospects. These additional tips could be particularly valuable for investors looking to understand the full picture behind Saba Capital's investment decision.
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