On October 11, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a New York-based investment firm, added 44,200 shares of Destra Multi-Alternative Fund (DMA, Financial) to its portfolio. This transaction increased the firm's total holdings in DMA to 1,125,720 shares, representing a 4.09% change. The shares were acquired at a price of $6.65 each, making the total value of the transaction approximately $293,730. The firm's position in DMA now accounts for 0.2% of its portfolio, while it holds a 12.56% stake in the total shares of DMA.
Destra Multi-Alternative Fund is a non-diversified, closed-end management investment company based in the USA. The company operates as an interval fund with a continuous offering of fund shares. Its primary objective is to seek returns from capital appreciation and income, with a particular emphasis on income generation. The company operates in a single segment and has a market capitalization of $59.785 million. 
About Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio) is an investment firm located at 405 Lexington Avenue, New York. The firm manages a portfolio of 624 stocks, with a total equity of $3.84 billion. Its top holdings include Templeton Global Income Fund (GIM, Financial), BlackRock Capital Allocation Trust (BCAT, Financial), BlackRock Health Sciences Trust II (BMEZ, Financial), BlackRock Innovation & Growth Tr(BIGZ, Financial), and BlackRock ESG Capital Allocation Trust(ECAT, Financial). The firm primarily invests in the Financial Services and Technology sectors. 
Performance and Financial Health of DMA
As of October 13, 2023, DMA's stock price stands at $6.67, representing a 0.3% gain since the transaction. However, the stock has seen a significant decline of 44.42% since its IPO and a year-to-date decline of 3.89%. The stock's GF Score is 19/100, indicating poor future performance potential. The company's financial strength is rated 5/10, while its profitability rank is a low 1/10. The company's growth rank is not applicable due to insufficient data.
In terms of financial health, DMA's Altman Z score and cash to debt ratio are not available. The company operates in the Asset Management industry and has a negative return on equity (ROE) of -8.16% and a negative return on assets (ROA) of -6.77%.
Growth and Momentum of DMA
Due to insufficient data, the growth metrics such as gross margin growth, operating margin growth, and 3-year revenue growth for DMA are not available. The stock's momentum, as indicated by its RSI 5 day, RSI 9 day, RSI 14 day, and momentum index, is also not available.
Conclusion
In conclusion, Saba Capital Management, L.P. (Trades, Portfolio)'s recent acquisition of DMA shares represents a significant addition to its portfolio. However, the performance and financial health of DMA raise concerns. The stock's poor GF Score, low profitability rank, and negative ROE and ROA suggest potential risks. Therefore, value investors should exercise caution and conduct thorough research before considering an investment in DMA.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
