On November 15, 2023, SIT Investment Associates Inc made a significant addition to its investment portfolio by purchasing 1,145,417 shares of Neuberger Berman High Yield Strategies Fund (NHS). This transaction marked a new holding for the firm, with a trade impact of 0.23% on the portfolio. The shares were acquired at a price of $7.45 each, making the total holding in NHS account for 4.42% of the traded stock's outstanding shares.
Background of SIT Investment Associates Inc
SIT Investment Associates Inc, a prominent investment management firm established in 1981, has a rich history of growth and diversification. With a team of 36 investment professionals, the firm manages over $6.6 billion in assets, focusing on a variety of sectors with a strong emphasis on financial services and technology. The firm's investment approach combines quantitative and fundamental analysis, catering to a diverse clientele that includes high net worth individuals and various institutional investors. SIT Investment Associates Inc's top holdings include notable names such as Cornerstone Strategic Value Fund Inc (CLM) and tech giants like Apple Inc (NASDAQ:AAPL) and Microsoft Corp (NASDAQ:MSFT).
Neuberger Berman High Yield Strategies Fund at a Glance
Neuberger Berman High Yield Strategies Fund operates as a closed-end management investment company, focusing on equity, fixed income, and alternative investment strategies. With a market capitalization of $193.17 million, NHS has been serving investors since its IPO on July 29, 2003. Despite its current status as significantly overvalued according to GuruFocus metrics, the fund remains an active player in the asset management industry.
Impact of the Transaction on SIT Investment Associates Inc's Portfolio
The acquisition of NHS shares by SIT Investment Associates Inc represents a strategic move, as the firm diversifies its portfolio with a new asset class. The trade price of $7.45 aligns with the current stock price, indicating a potentially calculated entry point for the investment firm. With a trade impact of 0.23%, this new holding could signal confidence in the high yield strategies that NHS offers, despite the fund's current financial metrics.
Financial Metrics and Performance Indicators of NHS
NHS's financial health presents a mixed picture. With a market capitalization of $193.17 million and a PE percentage of 0.00, indicating no earnings, the fund is currently deemed significantly overvalued with a GF Value of $2.20. The stock's performance indicators, such as a GF Score of 49/100, a Financial Strength rank of 5/10, and a Profitability Rank of 3/10, suggest cautious potential for future performance. Additionally, the lack of growth, as indicated by a Growth Rank of 0/10, and a low GF Value Rank of 1/10, further underscore the challenges NHS faces.