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Saba Capital Management Invests in Clough Global Equity Fund

Saba Capital Management purchased 83,600 shares of Clough Global Equity Fund ( GLQ ) for $11.52 per share on Jan. 25, according to a Form 4 filing with the Securities and Exchange Commission. Saba now owns 2,196,384 shares of the company.

Clough Global Equity Fund has a market cap of $203.89 million, an enterprise value of $315.94, and a P/B ratio of 0.91.

The Clough Global Equity Fund is a large blend open-ended fund that seeks to provide investors with long-term capital appreciation. It has three classes A, C and I. Both A and C have $2,500 minimum investment requirements, and I has a $1 million minimum investment requirement.

The fund varies with different 12 b-1 fees. A has a 0.25% fee, C has a 0.75% fee, and I has no 12 b-1 fees.

Class A has a 5.5% upfront sales charge that will be charged when you initially invest into the fund. Neither C nor I has these charges.

The expense ratio differs from the different classes of the fund.

  • Class A has an expense ratio of 1.95%.

  • Class C has an expense ratio of 2.70%.

  • Class I has an expense ratio of 1.70%.

According to GuruFocus, Clough Global Equity Fund has a 4 out of 10 financial strength rating with a cash-debt ratio of 0.01 and an equity-asset ratio of 0.55. The Piotroski F-Score of 5 indicates the company's financial situation is typical for a stable company.

Clough Global Equity Fund has a 2 out of 10 profitability and growth rating with an operating margin of -118.04%, a net margin of -554.61%, a return on equity (ROE) of -7.87%, three-year revenue growth of -18.60% and a return on assets (ROA) of -3.76%.

GuruFocus has detected two severe warning signs.

  • Clough Global Equity Fund's has poor financial strength. This usually is caused by a company having too much debt.
  • Clough Global Equity Fund's revenue per share growth rate has been in long-term decline over the previous five years. The average revenue per share growth rate was -26.30% per year.

Below is a Peter Lynch chart that shows Clough Global Equity is trading above its intrinsic value.

Disclosure: The author does not own any shares of this company.

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This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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