Saba Capital Management, L.P., a significant shareholder in Destra Multi-Alternative Fund (NYSE:DMA), has recently increased its stake in the company with the acquisition of additional shares worth over $1.34 million. The transactions took place on July 11 and July 12, as disclosed in the latest filings with the U.S. Securities and Exchange Commission.
On July 11, Saba Capital Management purchased 99,569 shares of Destra Multi-Alternative Fund at a price of $8.4 per share. The following day, the firm acquired another 60,280 shares, this time at a slightly higher price of $8.41 per share. These transactions have bolstered Saba Capital’s position in the fund, bringing its total ownership to 1,536,844 shares.
The investment moves by Saba Capital Management come as a notable development for investors and market watchers, indicating a strengthened belief in the potential of Destra Multi-Alternative Fund. The fund, which operates under the ticker symbol NYSE:DMA, has now seen a significant inflow of capital from one of its major shareholders.
Boaz Weinstein, associated with Saba Capital Management, is also listed as a reporting owner in the SEC filings. However, the documents did not specify any transactions conducted by Weinstein during the reported period.
Investors often look to the buying and selling activities of significant shareholders as signals of confidence or concern regarding a fund's performance or outlook. Saba Capital Management's recent purchases could be interpreted as a positive sign for the Destra Multi-Alternative Fund's future prospects.
The disclosed transactions are part of the public record and provide transparency into the trading activities of major shareholders in public companies and funds. It's worth noting that the information provided in these filings is a routine disclosure and does not necessarily indicate a strategic shift or a change in the overall investment thesis for the fund.
InvestingPro Insights
As Saba Capital Management increases its stake in Destra Multi-Alternative Fund (NYSE:DMA), the fund's performance metrics provide additional context for investors considering the implications of such a significant move. With a robust dividend yield of 7.44% as of 2023, the fund stands out for its income-generating potential. This is particularly noteworthy given the ex-date of the last dividend was June 16, 2023, reflecting a commitment to shareholder returns.
The fund's recent price performance further underscores the positive sentiment surrounding it. Over the past week, the fund has delivered a total return of 3.54%, and over the last month, this figure rises to an impressive 12.92%. Looking at the longer term, the six-month and year-to-date total returns stand at 32.71% and 36.12%, respectively, with a one-year total return reaching a significant 67.26%. This trajectory suggests a strong upward momentum, aligning with Saba Capital's increased investment.
InvestingPro Tips indicate that the fund's price is currently at 89.5% of its 52-week high, which may signal a potential upside for investors. Additionally, the average daily volume over the past three months is relatively low at 0.03M USD, an aspect for investors to consider in terms of liquidity. For those looking for more insights, InvestingPro offers additional tips on Destra Multi-Alternative Fund, and interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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