Liberty All-Star® Growth Fund, Inc. March 2024 Monthly Update
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Insights
The monthly update from Liberty All-Star Growth Fund, Inc. sheds light on several key aspects that are pertinent to investors and stakeholders. The reported Net Asset Value (NAV) discount widening from -9.1% to -9.7% could signal a market sentiment that is more bearish than the intrinsic valuation of the fund's assets. Such a scenario might encourage investors to consider whether the fund is undervalued and represents a buying opportunity or if the increasing discount reflects underlying concerns about the fund's holdings or management strategy.
With a year-to-date performance of 7.90% at NAV, the fund appears to be navigating the current market conditions effectively. However, it is important to consider that this performance does not account for taxes that shareholders would pay on distributions or the sale of fund shares. This figure, while indicative of the fund’s health, requires further analysis in the broader context of market conditions and comparable funds' performances.
The sector breakdown provided by the fund is a valuable insight into the portfolio diversification, with significant allocations in Information Technology and Health Care. This composition suggests the fund's strategy to capitalize on growth sectors, which could be a response to market trends favoring innovation and technology. However, potential investors should be aware of the risks associated with sector concentration, as any downturn in these industries could disproportionately affect the fund's performance.
Furthermore, the update includes changes in holdings, such as the liquidation of BJ's Wholesale Club Holdings, Inc. and the acquisition of Casey's General Stores, Inc. Such transactions reflect the fund's dynamic approach to portfolio management, though the rationale behind these specific changes is not detailed, making it difficult to assess their strategic value without additional information.
The distribution of returns, which includes dividends and long-term capital gains, points towards the fund's approach to provide shareholder value. However, the mention that a portion of the distributions consists of a return of capital is worth noting, as this could indicate that some payouts are not solely from earned income. This could be a red flag for investors seeking funds that generate steady income from investments rather than returning principal, which could potentially dilute long-term growth prospects.
Investors should also consider the economic and regulatory environment when evaluating the performance data. The fund's performance and strategy must be analyzed in the context of interest rate trends, inflation rates, geopolitical events and shifts in consumer behavior, all of which can have profound impacts on the market segments the fund is invested in.
Liberty All-Star Growth Fund, Inc.
Ticker: ASG
Monthly Update, March, 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. | 2.4 % |
2 | Amazon.com, Inc. | 2.2 % |
3 | Microsoft Corp. | 2.2 % |
4 | Casella Waste Systems, Inc. | 1.8 % |
5 | FirstService Corp. | 1.8 % |
6 | Vertex, Inc. | 1.7 % |
7 | Visa, Inc. | 1.7 % |
8 | Natera, Inc. | 1.6 % |
9 | SiteOne Landscape Supply, Inc. | 1.5 % |
10 | UnitedHealth Group, Inc. | 1.5 % |
11 | StepStone Group, Inc. | 1.5 % |
12 | Danaher Corp. | 1.4 % |
13 | Progyny, Inc. | 1.4 % |
14 | Glaukos Corp. | 1.4 % |
15 | EMCOR Group, Inc. | 1.3 % |
16 | Transcat, Inc. | 1.3 % |
17 | Canadian Pacific Kansas City, Ltd. | 1.3 % |
18 | S&P Global, Inc. | 1.3 % |
19 | Alphabet, Inc. | 1.2 % |
20 | Crane Co. | 1.2 % |
Holdings are subject to change.
Monthly Performance | |||
Performance | NAV | Market Price | Discount |
Beginning of month value | -9.1 % | ||
End of month value | -9.7 % | ||
Performance for month | 2.18 % | 1.48 % | |
Performance year-to-date | 7.90 % | 6.10 % | |
Net Assets at Month-End ($millions) | |
Total | |
Equities | |
Percent Invested | 98.7 % |
Sector Breakdown (% of equity portfolio)* | |
Information Technology | 22.7 % |
Health Care | 22.2 % |
Industrials | 18.4 % |
Financials | 13.4 % |
Consumer Discretionary | 11.1 % |
Materials | 3.6 % |
Communication Services | 3.0 % |
Real Estate | 2.5 % |
Consumer Staples | 1.8 % |
Energy | 1.3 % |
Total Market Value | 100.0 % |
*Based on Standard & Poor's and MSCI Global Industry Classification Standard (GICS).
New Holdings
Casey's General Stores, Inc.
Holdings Liquidated
BJ's Wholesale Club Holdings, 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 March 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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