Saba capital buys Destra multi-alternative fund (DMA) shares

Saba Capital Management, L.P., led by Boaz Weinstein, acquired an additional 68,449 shares of Destra Multi-Alternative Fund (NASDAQ:DMA) on September 9, 2025, for $588,661 at $8.6 per share, bringing their total stake to 2,235,144 shares. While DMA has shown strong momentum with a ~13% annual return and offers an attractive ~11.4% dividend yield, InvestingPro analysis indicates a weak financial health score, advising caution for investors considering this institutional move.

Analysis

Saba Capital Management, L.P., led by notable investor Boaz Weinstein, has increased its holding in Destra Multi-Alternative Fund (DMA), acquiring an additional 68,449 shares at $8.60 each. This transaction, valued at $588,661, elevates Saba's total stake to 2,235,144 shares, signaling continued conviction in the fund. The investment context is mixed; while DMA has demonstrated strong performance with a ~13% total return over the past year and offers a compelling dividend yield of approximately 11.4%, there are significant underlying concerns. An InvestingPro analysis flags a 'WEAK' financial health score for the fund, creating a direct conflict between the bullish action of a sophisticated institutional investor and quantitative fundamental warnings. This divergence suggests Saba may be pursuing a strategy based on perceived mispricing or a future catalyst not reflected in standard financial metrics, a common approach for activist investors targeting assets with high yields but questionable fundamentals. The negative per-ticker sentiment score of -0.2 for DMA accurately reflects this risk-reward tension.

Key Decisions for Investors

• Investors attracted to the high ~11.4% dividend yield must conduct thorough due diligence on DMA's portfolio and balance sheet, as this return is coupled with a 'WEAK' financial health score, indicating elevated risk.
• Saba Capital's accumulation of shares could be viewed as a bullish signal from a specialized activist, but this move should not be followed blindly without understanding the potential for a complex, event-driven thesis.
• Monitor future SEC filings from Saba Capital for further position changes and scrutinize any announcements from Destra Multi-Alternative Fund regarding its dividend or strategy, as these will be critical indicators for the investment's outlook.