Liberty All-Star® Growth Fund, Inc. January 2024 Monthly Update
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Insights
Examining the Liberty All-Star Growth Fund's January 2024 monthly update, several key financial indicators stand out. The fund's net asset value (NAV) and market price performance are critical for assessing the fund's health and investor sentiment. A discount of 7.4% indicates that the market may undervalue the assets within the fund, potentially signaling a buying opportunity for value investors. However, the modest monthly performance figures (0.33% NAV, 1.14% market price) suggest a cautious market outlook.
The sector breakdown reveals a heavy concentration in Information Technology and Health Care, sectors known for volatility but also high growth potential. This allocation could impact the fund's performance, particularly in a market environment favoring these sectors. The fund's strategy of combining different capitalization-focused managers could provide diversification benefits, reducing unsystematic risk.
From a market trends perspective, the Liberty All-Star Growth Fund's update offers insights into the broader market's sector preferences. With 99.6% of assets invested, the fund is highly exposed to market fluctuations. The fund's top holdings, which include tech giants like Microsoft and Amazon, reflect a continued investor confidence in large-cap growth stocks.
Furthermore, the fund's recent portfolio adjustments, such as the liquidation of Diodes, Inc. and Rapid7, Inc., alongside the addition of new holdings like Agilysys, Inc. and Dynatrace, Inc., indicate an active management approach aimed at capitalizing on shifting market dynamics. Investors may interpret these changes as the fund's adaptability to changing market conditions, which could be a positive signal for potential investors.
An economist's view on the fund's performance would consider the broader economic context, such as inflation rates, interest rate trends and economic growth forecasts. The fund's slight performance increase and the sector allocations may reflect broader economic trends, such as technological innovation and healthcare advancements. The discount to NAV could also be influenced by macroeconomic factors that affect investor confidence and market liquidity.
Additionally, the distributions characterized by a return of capital rather than income could suggest that the fund is prioritizing maintaining its dividend payments, possibly at the expense of reinvestment in growth opportunities. This strategy may have implications for the fund's long-term growth trajectory in relation to economic cycles.
Liberty All-Star Growth Fund, Inc.
Ticker: ASG
Monthly Update, January, 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. | 2.6 % |
2 | Microsoft Corp. | 2.2 % |
3 | Amazon.com, Inc. | 2.1 % |
4 | Progyny, Inc. | 1.9 % |
5 | FirstService Corp. | 1.9 % |
6 | Visa, Inc. | 1.8 % |
7 | Casella Waste Systems, Inc. | 1.7 % |
8 | UnitedHealth Group, Inc. | 1.7 % |
9 | Danaher Corp. | 1.5 % |
10 | Vertex, Inc. | 1.5 % |
11 | S&P Global, Inc. | 1.4 % |
12 | Glaukos Corp. | 1.4 % |
13 | Transcat, Inc. | 1.4 % |
14 | SiteOne Landscape Supply, Inc. | 1.4 % |
15 | StepStone Group, Inc. | 1.3 % |
16 | Hamilton Lane, Inc. | 1.3 % |
17 | Crane Co. | 1.3 % |
18 | MSCI, Inc. | 1.3 % |
19 | Workday, Inc. | 1.2 % |
20 | Natera, Inc. | 1.2 % |
Holdings are subject to change. | ||
Monthly Performance | |||
Performance | NAV | Market Price | Discount |
Beginning of month value | -8.2 % | ||
Distributions (Ex-Date January 18th) | |||
End of month value | -7.4 % | ||
Performance for month | 0.33 % | 1.14 % | |
Performance year-to-date | 0.33 % | 1.14 % |
Net Assets at Month-End ($millions) | |
Total | |
Equities | |
Percent Invested | 99.6 % |
Sector Breakdown (% of equity portfolio)* | |
Information Technology | 22.8 % |
Health Care | 22.6 % |
Industrials | 16.7 % |
Financials | 13.2 % |
Consumer Discretionary | 11.2 % |
Real Estate | 3.9 % |
Materials | 3.7 % |
Communication Services | 3.1 % |
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
Agilysys, Inc.
Dynatrace, Inc.
Palomar Holdings, Inc.
Holdings Liquidated
Diodes, Inc.
Rapid7, 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 January 31, 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.
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