In a just published Form 13, filed with the US Securities and Exchange Commission (SEC First Trust High Income Longort Fund (NYSE:FSD) reported that Saba Capital has picked up 4,422,377 of common stock as of 2016-12-15.
The acquisition brings the aggregate amount owned by Saba Capital to a total of 4,422,377 representing a 12.54% stake in the company.
For those not familiar with the company, First Trust High Income Long/Short Fund is a diversified closed-end management investment company. The Fund’s primary investment objective is to provide current income. The Fund’s secondary objective is capital appreciation. The Fund will seek to achieve its investment objectives by investing, under normal market conditions, a majority of its assets in a diversified portfolio of the United States and foreign (including emerging markets) high-yield corporate fixed-income securities of varying maturities that are rated below investment grade at the time of purchase.
A glance at First Trust High Income Longort Fund (NYSE:FSD)’s key stats reveals a current market capitalization of $563.66 million based on 35.27 million shares outstanding and a price at last close of $15.98 per share.
Looking at insider activity, there are a few transactions worth noting.
Specifically, on 2016-12-14, Saba picked up 52,011 at a purchase price of $16.01. This brings their total holding to 4,474,388 as of the date of the filing.
On the sell side, the most recent transaction saw Cohen unload 11,000 shares at a sale price of $19.00. This brings their total holding to 5000.
It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on First Trust High Income Longort Fund (NYSE:FSD) as things move forward to see if its progress aligns with these transactions.
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