On November 2, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, added 297,396 shares of Federated Hermes Premier Municipal Income Fund (FMN, Financial) to its portfolio. This article provides an in-depth analysis of this transaction, the profiles of the guru and the traded company, and the potential impact on the guru's portfolio and the traded stock's performance.
Details of the Transaction
The transaction saw Saba Capital Management, L.P. (Trades, Portfolio) increase its stake in FMN by 34.44%, adding 297,396 shares at a trading price of $9.44 per share. This addition had a 0.07% impact on the firm's portfolio, bringing its total holdings in FMN to 1,160,940 shares, which represents 0.29% of its portfolio and 10.10% of FMN's total shares.
Profile of Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio), located at 405 Lexington Avenue, New York, NY 10174, is an investment firm with a diverse portfolio. The firm holds 624 stocks, with a total equity of $3.84 billion. 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 top sectors are Financial Services and Technology. 
Overview of Federated Hermes Premier Municipal Income Fund (FMN, Financial)
Federated Hermes Premier Municipal Income Fund (FMN) is a diversified, closed-end management investment company based in the USA. The company, which had its IPO on December 20, 2002, aims to provide current income exempt from federal income tax, including the federal alternative minimum tax. Its portfolio comprises different sectors such as hospitals, toll road, senior care, airport, tobacco, and others. The company has a market cap of $110.950 million and its stock is currently priced at $9.65. 
FMN's GF Score is 63/100, indicating a moderate future performance potential. The company's Financial Strength is ranked 8/10, while its Profitability Rank is 3/10. The company's Growth Rank is 0/10, indicating no significant growth in recent years. The GF Value Rank is 8/10, suggesting that the stock is significantly undervalued. The Momentum Rank is 5/10, indicating a moderate momentum in the stock's price.
Conclusion
The recent transaction by Saba Capital Management, L.P. (Trades, Portfolio) reflects the firm's confidence in FMN's potential for growth and profitability. Despite FMN's low growth and profitability ranks, its high financial strength and GF Value ranks suggest that the stock is significantly undervalued and has a strong financial position. This transaction could potentially enhance the performance of the guru's portfolio and contribute to the traded stock's performance in the future.
Please note that all data and rankings are accurate as of November 4, 2023, and are based on the provided relative data.
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.
