SCHEDULE 13G/A: Sit Investment Associates Discloses 12.2% Stake in RiverNorth Capital & Income Fund

Sit Investment Associates, Inc. and its subsidiary, Sit Fixed Income Advisors II, LLC, have reported a 12.2% beneficial ownership stake in RiverNorth Capital & Income Fund, Inc. common stock.

Summary

• Sit Investment Associates, Inc. and Sit Fixed Income Advisors II, LLC, both registered investment advisers, have filed an Amendment No. 2 to Schedule 13G regarding their beneficial ownership in RiverNorth Capital & Income Fund, Inc.
• The reporting persons collectively beneficially own 426,811 shares of RiverNorth Capital & Income Fund, Inc. common stock.
• This ownership represents 12.2% of the issuer's common stock outstanding.
• The percentage is calculated based on 3,486,698 shares of common stock outstanding as of June 30, 2024, adjusted for shares repurchased by the Issuer on September 3, 2024, and December 3, 2024.
• The shares are held for client accounts, and the reporting persons exercise shared voting and dispositive power over these securities.
• The filing certifies that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 7

Explanation: The document is a routine regulatory filing indicating a significant, non-control-oriented institutional investment. It's positive in that it shows institutional confidence, but it doesn't contain new financial performance data or strategic announcements that would dramatically shift sentiment.

Positives

• A significant institutional investor, Sit Investment Associates, Inc., and its subsidiary, Sit Fixed Income Advisors II, LLC, holds a substantial 12.2% stake, which may indicate confidence in RiverNorth Capital & Income Fund, Inc.
• The acquisition of shares was stated to be in the ordinary course of business, not for control purposes, suggesting a long-term investment perspective by the institutional holder.

Risks

• The reporting persons disclaim beneficial ownership of the securities, as they are held for client accounts, meaning their direct financial risk is limited to their advisory role rather than direct equity ownership.

Future Outlook

The document does not provide specific forward-looking statements or guidance regarding the issuer's future performance or the reporting persons' future investment intentions beyond the statement that shares are held in the ordinary course of business.

Management Comments

• "The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11." (Certification by Paul E. Rasmussen, Vice President of Sit Investment Associates, Inc. and Sit Fixed Income Advisors II, LLC).

Industry Context

This filing indicates a significant institutional investment in a closed-end fund (RiverNorth Capital & Income Fund, Inc.) by an investment advisory firm. Such filings are common in the asset management industry, reflecting portfolio adjustments or long-term strategic holdings by institutional investors on behalf of their clients. The 12.2% stake suggests a notable position within the fund's shareholder base.

Comparison to Industry Standards

• The filing of a Schedule 13G by an investment adviser for holdings over 5% is standard practice for institutional investors in the U.S. market, adhering to SEC regulations.
• The beneficial ownership of 12.2% is a substantial stake for an institutional investor, often placing them among the top shareholders, which can provide a degree of influence, even if control is disclaimed.
• The disclaimer of beneficial ownership, as the shares are held for client accounts, is typical for investment advisers managing diversified portfolios.

Stakeholder Impact

• Shareholders: The presence of a significant institutional investor like Sit Investment Associates may be viewed positively, potentially indicating a degree of stability or confidence in the fund.

Next Steps

• The reporting persons will continue to monitor their beneficial ownership and file amendments to Schedule 13G or Schedule 13D as required by SEC regulations if their ownership percentage changes significantly or if their investment intent shifts.

Key Dates

Recommendation

Keywords

RiverNorth Capital & Income Fund, Sit Investment Associates, Sit Fixed Income Advisors II, Schedule 13G, Beneficial Ownership, Common Stock, Investment Adviser, Institutional Ownership, SEC Filing, Closed-End Fund