Liberty All-Star® Growth Fund, Inc. February 2024 Monthly Update
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Insights
An examination of the Liberty All-Star Growth Fund's monthly update reveals a noteworthy increase in NAV from $5.65 to $5.95, paired with a market price rise from $5.23 to $5.41. This indicates a performance uptick for the month, with a 5.31% return on NAV and a 3.44% return on market price. However, the widening of the discount from -7.4% to -9.1% suggests a growing discrepancy between market valuation and the underlying assets, which could potentially signal investor concerns or a market undervaluation of the fund.
From a sector allocation perspective, the fund's significant exposure to Information Technology and Health Care sectors, comprising 23.0% and 22.1% of the equity portfolio respectively, aligns with trends in all-cap growth strategies that favor sectors with high growth potential. The addition of new holdings such as CECO Environmental Corp. and Waste Management, Inc. indicates strategic portfolio adjustments, likely aimed at capitalizing on specific industry trends or diversifying risks.
In the context of the current market environment, the fund's strategy of combining managers with different capitalization focuses could be advantageous. This approach allows for diversification across market segments, potentially reducing volatility and improving risk-adjusted returns. The fund's high percentage invested, 98.7%, suggests an aggressive strategy that seeks to fully capitalize on market opportunities, which could appeal to investors with a higher risk tolerance.
The sector breakdown, with a heavy emphasis on Information Technology and Health Care, is indicative of a growth-oriented investment philosophy. These sectors are generally known for their dynamic nature and potential for innovation-driven growth, which is consistent with the fund's all-cap growth style. Investors and analysts alike might scrutinize the fund's performance against broader market indices to gauge its competitive edge in achieving superior growth.
The fund's performance should be contextualized within the broader economic landscape. Factors such as interest rate changes, inflationary pressures and economic cycles can significantly impact growth-focused investment strategies. For instance, sectors like Information Technology and Health Care may react differently to macroeconomic shifts, which could affect the fund's performance. The fund's ability to navigate these economic variables while maintaining a growth trajectory is crucial for long-term success.
Additionally, the fund's discount widening may reflect broader market sentiment or specific concerns about the fund's asset valuation. It is important to consider that closed-end funds like this one can trade at significant premiums or discounts to NAV, which can be influenced by investor sentiment, distribution rates and fund management performance.
Liberty All-Star Growth Fund, Inc.
Ticker: ASG
Monthly Update, February, 2024
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. | 2.5 % |
2 | Amazon.com, Inc. | 2.2 % |
3 | Microsoft Corp. | 2.2 % |
4 | Vertex, Inc. | 1.9 % |
5 | FirstService Corp. | 1.8 % |
6 | Casella Waste Systems, Inc. | 1.8 % |
7 | Visa, Inc. | 1.8 % |
8 | Natera, Inc. | 1.6 % |
9 | UnitedHealth Group, Inc. | 1.5 % |
10 | SiteOne Landscape Supply, Inc. | 1.5 % |
11 | Danaher Corp. | 1.5 % |
12 | StepStone Group, Inc. | 1.5 % |
13 | Progyny, Inc. | 1.4 % |
14 | EMCOR Group, Inc. | 1.4 % |
15 | Ollie's Bargain Outlet Holdings, Inc. | 1.4 % |
16 | Saia, Inc. | 1.3 % |
17 | Glaukos Corp. | 1.3 % |
18 | S&P Global, Inc. | 1.3 % |
19 | Deckers Outdoor Corp. | 1.3 % |
20 | Canadian Pacific Kansas City, Ltd. | 1.2 % |
Holdings are subject to change. | ||
Monthly Performance | |||
Performance | NAV | Market Price | Discount |
Beginning of month value | -7.4 % | ||
End of month value | -9.1 % | ||
Performance for month | 5.31 % | 3.44 % | |
Performance year-to-date | 5.59 % | 4.56 % | |
Net Assets at Month-End ($millions) | |
Total | |
Equities | |
Percent Invested | 98.7 % |
Sector Breakdown (% of equity portfolio)* | |
Information Technology | 23.0 % |
Health Care | 22.1 % |
Industrials | 17.9 % |
Financials | 13.0 % |
Consumer Discretionary | 11.8 % |
Materials | 3.6 % |
Communication Services | 2.9 % |
Real Estate | 2.9 % |
Consumer Staples | 1.5 % |
Energy | 1.3 % |
Total Market Value | 100.0 % |
*Based on Standard & Poor's and MSCI Global Industry Classification Standard (GICS). | |
New Holdings
CECO Environmental Corp.
DoubleVerify Holdings, Inc.
Waste Management, Inc.
Holdings Liquidated
Sun Communities, 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 2024 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 February 29, 2024 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.
FAQ
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