On August 17, 2023, SIT Investment Associates Inc, a Minneapolis-based investment management firm, increased its stake in John Hancock Income Securities Trust (JHS, Financial). This article will delve into the details of the transaction, provide an overview of the firm and the traded stock, and analyze the performance and industry of the traded stock.
Details of the Transaction
The transaction took place on August 17, 2023, with SIT Investment Associates Inc adding 165,285 shares to its holdings in John Hancock Income Securities Trust. The shares were acquired at a price of $10.67 each, resulting in a 7.61% change in shares. This trade had a 0.05% impact on the guru's portfolio. Following the transaction, SIT Investment Associates Inc now holds 2,336,414 shares in John Hancock Income Securities Trust, representing 0.65% of its portfolio and 20.06% of the traded stock's total shares.
Profile of the Firm
SIT Investment Associates Inc was established in 1981 by Eugene C. Sit. The firm, which is largely owned by the Sit family, has grown to 73 employees, including 36 investment professionals. The firm utilizes quantitative and fundamental methodologies to make its investment decisions, allocating its assets in fixed income and public equity markets on a global scale. The firm's top holdings include Cornerstone Strategic Value Fund Inc (CLM, Financial), Apple Inc (AAPL, Financial), Broadcom Inc (AVGO, Financial), Microsoft Corp (MSFT, Financial), and Putnam Premier Income Trust (PPT, Financial). The firm's equity stands at $3.81 billion, with the financial services and technology sectors being its top sectors. 
Overview of the Traded Stock
John Hancock Income Securities Trust is a US-based closed-ended diversified management investment company. Its primary objective is to generate a high level of current income consistent with prudent investment risk. The company invests its net assets in income securities, including marketable corporate debt securities, governmental obligations, and cash & commercial paper. The company's market capitalization stands at $123.686 million, and its current stock price is $10.62. The company's GF Score is 39/100, indicating poor future performance potential. 
Performance of the Traded Stock
Since the transaction, the stock's price has decreased by 0.47%, and its year-to-date price change ratio stands at -1.76%. The stock's financial strength is ranked 7/10 while its profitability rank is 2/10. However, the stock does not have enough data to compute a growth rank. The stock's Piotroski F-Score is 5, indicating a stable financial situation.
Analysis of the Traded Stock's Industry
John Hancock Income Securities Trust operates in the asset management industry. The company's return on equity (ROE) is -4.36, and its return on assets (ROA) is -2.53. The company's gross margin growth and operating margin growth are not available due to lack of growth data. The company's RSI 5 Day is 29.96, its RSI 9 Day is 37.70, and its RSI 14 Day is 41.53, suggesting that the stock is currently in a neutral state.
Conclusion
In conclusion, SIT Investment Associates Inc's recent addition to its stake in John Hancock Income Securities Trust is a significant move that increases its exposure to the asset management industry. Despite the stock's poor performance indicators, the guru's decision to increase its stake could be based on its long-term potential or other factors not reflected in the current data. As always, investors are advised to conduct their own research before making investment decisions.
