DMA: Reintroducing A Monthly Distribution Adds More Appeal

Summary

  • Destra Multi-Alternative Fund has traded at a deep discount but is off some of the widest levels we've seen so far with changes over the years.
  • The fund's strategy focuses on non-correlated alternative investments, but its high expenses and hedging strategy have kept total NAV returns muted.
  • Despite relatively weaker underlying portfolio performance, that isn't necessarily a negative when there is an opportunity to realize the discount.
  • They recently reinitiated a monthly distribution policy, and that can make it much more appealing to hold while waiting for that potential discount realization.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

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Written by Nick Ackerman, co-produced by Stanford Chemist

Destra Multi-Alternative Fund (NYSE:DMA) is a unique closed-end fund that has been continually plagued by a deep discount since hitting the public space. The fund was actually a private

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This article was written by

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Nick Ackerman is a former financial advisor using his experience to provide coverage on closed-end funds and exchange-traded funds. Nick has previously held Series 7 and Series 66 licenses and has been investing personally for over 14 years.

He contributes to the investing group CEF/ETF Income Laboratory along with leader Stanford Chemist, and Juan de la Hoz and Dividend Seeker. They help members benefit from income and arbitrage strategies in CEFs and ETFs by providing expert-level research. The service includes: managed portfolios targeting safe 8%+ yields, actionable income and arbitrage recommendations, in-depth analysis of CEFs and ETFs, and a friendly community of over a thousand members looking for the best income ideas. These are geared towards both active and passive investors. The vast majority of their holdings are also monthly-payers, which is great for faster compounding as well as smoothing income streams. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DMA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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