ABSOLUTE INVESTMENT ADVISERS, LLC Acquires Significant Stake in Destra Multi-Alternative Fund

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Jan 17, 2025
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Transaction Overview

On December 31, 2024, ABSOLUTE INVESTMENT ADVISERS, LLC (Trades, Portfolio) made a notable acquisition in the financial market by purchasing 713,800 shares of Destra Multi-Alternative Fund (DMA, Financial). The transaction was executed at a price of $8.46 per share, marking a strategic move by the firm to enhance its investment portfolio. This acquisition represents a significant commitment to DMA, as it now constitutes 100% of the firm's holdings in this particular stock, impacting 7.96% of the firm's total portfolio.

Profile of ABSOLUTE INVESTMENT ADVISERS, LLC (Trades, Portfolio)

ABSOLUTE INVESTMENT ADVISERS, LLC (Trades, Portfolio) is an investment firm located at 82 South Barrett Square, Rosemary Beach, FL 32461. While specific details about the firm's investment philosophy are not disclosed, the firm is known for its strategic investments in various sectors. The total equity managed by the firm is currently not available, indicating a focus on selective and impactful investments.

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Destra Multi-Alternative Fund Overview

Destra Multi-Alternative Fund is a non-diversified, closed-end management investment company operating as an interval fund. The fund's primary objective is to achieve capital appreciation and income generation, with a strong emphasis on income. As of the latest data, the fund has a market capitalization of $77.084 million and a current stock price of $8.60. The fund's performance is reflected in its GF Score of 40/100, indicating a poor future performance potential.

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Impact of the Transaction

The acquisition of 713,800 shares by ABSOLUTE INVESTMENT ADVISERS, LLC (Trades, Portfolio) has resulted in a 1.65% gain in the stock price since the transaction. This strategic move positions the firm as a significant stakeholder in DMA, potentially influencing the fund's future direction and performance. The transaction underscores the firm's confidence in DMA's potential for capital appreciation and income generation.

Financial Metrics and Valuation

Destra Multi-Alternative Fund currently holds a price-to-earnings ratio of 8.69, with no available data for GF Valuation. The year-to-date price change stands at 1.06%, while the stock has experienced a -28.33% change since its IPO. The fund's Profitability Rank is 2/10, indicating challenges in generating consistent profits.

Performance and Growth Indicators

Despite a low Financial Strength rank of 4/10 and a Momentum Rank of 9/10, Destra Multi-Alternative Fund shows potential in its momentum. The fund's Piotroski F-Score is 5, suggesting moderate financial health. The Operating Margin growth remains stagnant, reflecting the need for strategic improvements.

Additional Stock Metrics

Destra Multi-Alternative Fund's return on equity (ROE) is 8.95, and return on assets (ROA) is 7.29, indicating moderate efficiency in utilizing assets and equity. The fund's 14-day relative strength index (RSI) is 43.46, suggesting a neutral position in terms of stock momentum. The Altman Z score and other growth metrics are not available, highlighting areas for potential improvement.

Conclusion

The acquisition of Destra Multi-Alternative Fund shares by ABSOLUTE INVESTMENT ADVISERS, LLC (Trades, Portfolio) signifies a strategic investment decision with potential implications for value investors. While the fund's current performance metrics indicate challenges, the firm's significant stake could drive future growth and stability. Investors considering DMA should weigh the fund's current valuation and performance indicators against its potential for capital appreciation and income generation.

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.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.