Saba Capital buys Destra multi-alternative fund shares

Saba Capital Management, a ten percent owner of Destra Multi-Alternative Fund (NYSE:DMA), increased its stake by purchasing 27,923 shares at $8.57 on September 5, 2025, for a total of $239,300. This transaction raises the combined beneficial ownership of Saba Capital and Weinstein Boaz to 2,166,195 shares. While DMA currently trades at $8.60, near its 52-week high of $9.16, offers an attractive 11.5% dividend yield, and is up 7.35% year-to-date, InvestingPro analysis assigns the fund a weak financial health score of 0.88.

Analysis

Insider activity at Destra Multi-Alternative Fund (NYSE:DMA) indicates heightened conviction from a major shareholder. Saba Capital Management, a ten percent owner, has increased its holdings by purchasing 27,923 shares at $8.57, bringing its combined beneficial ownership with Weinstein Boaz to 2,166,195 shares. This move is noteworthy as DMA currently exhibits conflicting signals. On one hand, the stock displays strong positive momentum, trading near its 52-week high of $9.16 with a 7.35% year-to-date gain, and offers a substantial dividend yield of approximately 11.5%. On the other hand, this is sharply contrasted by a reported weak financial health score of 0.88 from InvestingPro, suggesting potential underlying fundamental weaknesses. The transaction by a sophisticated institutional owner suggests a belief in value that may not be captured by quantitative financial health metrics alone, creating a classic dichotomy between insider sentiment and fundamental screening data.

Key Decisions for Investors

• Investors attracted to the high ~11.5% dividend yield should conduct due diligence on its sustainability, as the fund's weak financial health score of 0.88 signals a potential risk to future payouts.
• The significant insider purchase by Saba Capital Management, a 10% owner, serves as a strong bullish signal that could be weighed against the poor quantitative health score, suggesting the insider may perceive value not reflected in the metrics.
• Given the contradictory signals of strong price momentum and a high yield versus poor fundamental health, the stock should be considered a high-risk, high-reward position suitable for investors with a significant tolerance for volatility.