Liberty All-Star® Growth Fund, Inc. December 2023 Monthly Update
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Insights
The monthly performance metrics for the Liberty All-Star Growth Fund provide a snapshot of its recent financial health and investment strategy effectiveness. The reported increase in net asset value (NAV) from $5.35 to $5.75 alongside a market price uptick from $5.02 to $5.28 indicates a positive trajectory for the fund over the month of December. However, the widening discount from -6.2% to -8.2% suggests a growing divergence between the market's valuation of the fund and its NAV.
From an investor's perspective, the fund's year-to-date performance figures of 19.37% (NAV) and 16.28% (market price) are critical indicators of the fund's ability to deliver returns above management fees and expenses. The sector breakdown, with a heavy emphasis on Health Care and Information Technology, reflects the fund's strategic allocation in sectors that are traditionally associated with growth. The addition and liquidation of holdings demonstrate active portfolio management in response to shifting market conditions or the investment managers' analysis of company prospects.
The fund's investment approach, combining three distinct growth style investment managers focused on small-, mid- and large-cap equities, aims to diversify risk and optimize returns across different market segments. The top 20 holdings, accounting for 32.4% of the equity portfolio, include a mix of well-established companies like Microsoft and Amazon, as well as more specialized firms like Progyny and Glaukos, indicating a blend of stability and potential high-growth investments.
Market performance can be influenced by a variety of factors, including economic indicators, market sentiment and sector-specific trends. The performance of the fund's holdings within these sectors could signal how well the fund's investment strategy is aligned with current market dynamics. For example, the strong representation in Health Care and Information Technology may capitalize on trends accelerated by digital transformation and healthcare innovation.
It's important to contextualize the fund's performance within the broader economic landscape. The fund's reported performance may be reflective of macroeconomic conditions, such as interest rate changes, inflationary pressures and economic growth projections. The discount widening could be attributed to market sentiment or macroeconomic uncertainties that lead investors to value the fund's shares below their NAV. This phenomenon can occur when there is market volatility or when investors anticipate changes in the sectors the fund is heavily invested in.
Additionally, the fund's sector allocation decisions, such as the overweight in Health Care and Information Technology, could be influenced by the economic outlook for these industries. For instance, if there is a positive outlook for innovation and spending in these sectors, the fund's strategy may be well-positioned to benefit from such trends. Conversely, if there are headwinds or regulatory changes that could impact these sectors, the fund's performance could be negatively affected.
Liberty All-Star Growth Fund, Inc.
Ticker: ASG
Monthly Update, December, 2023
Investment Approach:
Fund Style: All-Cap Growth
Fund Strategy: Combines three growth style investment managers, each with a distinct capitalization focus (small-, mid- and large-cap) selected and continuously monitored by the Fund's Investment Advisor.
Investment Managers:
Weatherbie Capital, LLC
Small-Cap Growth
Congress Asset Management Company, LLP
Mid-Cap Growth
Sustainable Growth Advisers, LP
Large-Cap Growth
Top 20 Holdings at Month-End | ||
( | ||
1 | SPS Commerce, Inc. | 2.8 % |
2 | Microsoft Corp. | 2.1 % |
3 | Amazon.com, Inc. | 2.0 % |
4 | Progyny, Inc. | 1.9 % |
5 | FirstService Corp. | 1.8 % |
6 | Glaukos Corp. | 1.7 % |
7 | ACADIA Pharmaceuticals, Inc. | 1.7 % |
8 | Visa, Inc. | 1.7 % |
9 | Vertex, Inc. | 1.6 % |
10 | UnitedHealth Group, Inc. | 1.6 % |
11 | Casella Waste Systems, Inc. | 1.5 % |
12 | SiteOne Landscape Supply, Inc. | 1.5 % |
13 | Danaher Corp. | 1.4 % |
14 | S&P Global, Inc. | 1.4 % |
15 | Transcat, Inc. | 1.3 % |
16 | Hamilton Lane, Inc. | 1.3 % |
17 | Canadian Pacific Kansas City, Ltd. | 1.3 % |
18 | Inspire Medical Systems, Inc. | 1.3 % |
19 | StepStone Group, Inc. | 1.3 % |
20 | Crane Co. | 1.2 % |
Holdings are subject to change. | ||
Monthly Performance | |||
Performance | NAV | Market Price | Discount |
Beginning of month value | -6.2 % | ||
End of month value | -8.2 % | ||
Performance for month | 7.48 % | 5.18 % | |
Performance year-to-date | 19.37 % | 16.28 % |
Net Assets at Month-End ($millions) | |
Total | |
Equities | |
Percent Invested | 98.6 % |
Sector Breakdown (% of equity portfolio)* | |
Health Care | 23.4 % |
Information Technology | 22.7 % |
Industrials | 16.8 % |
Financials | 12.9 % |
Consumer Discretionary | 10.7 % |
Materials | 3.7 % |
Real Estate | 3.7 % |
Communication Services | 3.1 % |
Consumer Staples | 1.6 % |
Energy | 1.4 % |
Total Market Value | 100.0 % |
*Based on Standard & Poor's and MSCI Global Industry Classification Standard (GICS). | |
New Holdings
Brown & Brown, Inc.
Fabrinet
Valvoline, Inc.
Holdings Liquidated
Asbury Automotive Group, Inc.
Choice Hotels International, Inc.
Ciena Corp.
Seacoast Banking Corp. of Florida
Xponential Fitness, Inc.
The net asset value (NAV) of a closed-end fund is the market value of the underlying investments (i.e., stocks and bonds) in the Fund's portfolio, minus liabilities, divided by the total number of Fund shares outstanding. However, the Fund also has a market price; the value at which it trades on an exchange. If the market price is above the NAV the Fund is trading at a premium. If the market price is below the NAV the Fund is trading at a discount.
Performance returns for the Fund are total returns, which includes dividends, and are net of management fees and other Fund expenses. Returns are calculated assuming that a shareholder reinvested all distributions. Past performance cannot predict future investment results.
Performance will fluctuate with changes in market conditions. Current performance may be lower or higher than the performance data shown. Performance information shown does not reflect the deduction of taxes that shareholders would pay on Fund distributions or the sale of Fund shares. Shareholders must be willing to tolerate significant fluctuations in the value of their investment. An investment in the Fund involves risk, including loss of principal.
Sources of distributions to shareholders may include ordinary dividends, long-term capital gains and return of capital. The final determination of the source of all distributions in 2023 for tax reporting purposes will be made after year end. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during its fiscal year and may be subject to changes based on tax regulations. Based on current estimates a portion of the distributions consist of a return of capital. These estimates may not match the final tax characterization (for the full year's distributions) contained in shareholder 1099-DIV forms after the end of the year.
All data is as of December 31, 2023 unless otherwise noted.
Liberty All-Star® Growth Fund, Inc.
1-800-241-1850
www.all-starfunds.com
libinfo@alpsinc.com
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SOURCE Liberty All-Star Growth Fund, Inc.
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