SCHEDULE: Saba Capital Boosts Stake in Destra Multi-Alternative Fund

Saba Capital Management, L.P. has increased its beneficial ownership in Destra Multi-Alternative Fund to 23.86% through recent open market purchases.

Summary

• Saba Capital Management, L.P., along with Saba Capital Management GP, LLC and Boaz R. Weinstein, collectively increased their beneficial ownership in Destra Multi-Alternative Fund.
• The reporting persons now beneficially own 2,138,272 Common Shares, representing 23.86% of the issuer's outstanding common stock.
• This percentage is calculated based on 8,963,239 shares outstanding as of March 31, 2025, as disclosed in the company's N-CSR filed on June 6, 2025.
• Recent purchases include 61,989 shares bought on July 29, 2025, at $8.62 per share, and 41,802 shares bought on August 14, 2025, at $8.66 per share.
• Approximately $14,277,437 was paid to acquire the total Common Shares reported.
• Funds for these purchases were derived from investor subscription proceeds, capital appreciation, and margin account borrowings.

Sentiment

Score: 7

Explanation: The increased stake by Saba Capital, a known activist investor, could be viewed positively by shareholders anticipating potential value-unlocking initiatives. However, it also introduces the potential for management-shareholder friction.

Positives

• Saba Capital's increased stake demonstrates strong conviction in Destra Multi-Alternative Fund, potentially signaling perceived undervaluation or future upside.
• A significant activist stake often leads to increased scrutiny and potential for corporate governance improvements or strategic changes that could unlock shareholder value.

Negatives

• A large activist stake could lead to potential disagreements with current management or board, potentially causing disruption or diverting resources.
• The use of margin account borrowings by Saba Capital introduces leverage risk for the reporting person's investment.

Risks

• Saba Capital's investment in Destra Multi-Alternative Fund is partially funded by margin account borrowings, meaning the positions held are pledged as collateral, introducing leverage risk for Saba Capital.

Future Outlook

The filing is a disclosure of current beneficial ownership and recent transactions by an activist investor and does not provide forward-looking statements or guidance from the issuer.

Management Comments

• The filing is a disclosure by the reporting persons (Saba Capital Management, L.P., Saba Capital Management GP, LLC, and Boaz R. Weinstein) and does not contain direct quotes or paraphrased statements from Destra Multi-Alternative Fund's management.

Industry Context

This filing highlights the continued activity of activist investors like Saba Capital in the closed-end fund space. Activist campaigns often target funds trading at a discount to net asset value (NAV), aiming to unlock value through various strategies such as share repurchases, tender offers, or changes in investment policy. Saba Capital's increased stake suggests a potential activist play targeting Destra Multi-Alternative Fund.

Comparison to Industry Standards

• Saba Capital is a well-known activist investor specializing in closed-end funds. Their strategy often involves accumulating significant stakes to influence corporate governance and capital allocation decisions, a common practice among activist funds.
• While specific comparable companies or projects are not detailed in this filing, Saba Capital's approach aligns with typical activist strategies seen in the investment fund industry, where they often engage with boards to address discounts to NAV or improve shareholder returns.

Legal Proceedings

• The reporting persons (Saba Capital Management, L.P., Saba Capital Management GP, LLC, and Boaz R. Weinstein) have not been convicted in a criminal proceeding or been party to a civil proceeding enjoining future violations of securities laws in the last five years.

Stakeholder Impact

• Shareholders: Potential for increased shareholder value if Saba Capital's activism leads to positive changes; potential for volatility due to activist engagement.
• Management: May face increased pressure and scrutiny from a significant activist shareholder.
• Employees, Customers, Suppliers, Creditors: No direct immediate impact indicated by this ownership disclosure.

Next Steps

• The filing does not explicitly state future actions or milestones for Destra Multi-Alternative Fund or the reporting persons beyond the disclosure of their current ownership.

Key Dates

Recommendation

While Saba Capital's increased stake suggests potential for value creation through activist engagement, the specific strategies or outcomes are not yet clear. Investors should hold to observe the developments and potential actions taken by Saba Capital, as well as the response from Destra Multi-Alternative Fund's management.

Keywords

Destra Multi-Alternative Fund, Saba Capital, Schedule 13D, Activist Investor, Beneficial Ownership, Investment Fund, Common Shares, SEC Filing