Saba Capital Management, L.P., a significant stakeholder in PIMCO Dynamic Income Strategy Fund (NYSE:PDX), recently increased its holdings in the fund. According to a recent filing, Saba Capital acquired a total of 149,617 shares over two days, November 14 and 15, 2024. The purchase prices per share ranged from $24.79 to $25.18, resulting in a total transaction value of approximately $3.73 million.
Following these transactions, Saba Capital's total ownership in the PIMCO Dynamic Income Strategy Fund rose to 6,420,979 shares. The acquisitions reflect Saba Capital's continued interest in the fund, as the firm maintains its position as a ten percent owner.
InvestingPro Insights
Saba Capital's recent acquisition of PIMCO Dynamic Income Strategy Fund (NYSE:PDX) shares aligns with several positive indicators highlighted by InvestingPro. The fund's stock has demonstrated strong performance, with a 15.02% price total return over the past three months and an impressive 35.87% return over the last year. This robust performance is further underscored by PDX trading near its 52-week high, with its current price at 99.42% of that peak.
InvestingPro Tips suggest that PDX generally trades with low price volatility, which may appeal to investors seeking stability. Additionally, the fund offers an attractive dividend yield of 5.32% for 2024, with the most recent ex-dividend date on November 12, 2024. This high yield could be a contributing factor to Saba Capital's increased stake, as it provides a steady income stream for investors.
However, it's worth noting that the RSI suggests the stock might be in overbought territory, which could indicate a potential short-term pullback. Investors considering following Saba Capital's lead might want to monitor this closely.
For a more comprehensive analysis, InvestingPro offers 7 additional tips for PDX, providing deeper insights into the fund's performance and potential. These additional tips can help investors make more informed decisions about their portfolio strategy.
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