What strategies could improve DM's EPS consistency?
4/12/2025 03:10pm
**Destra Multi-Alternative Fund (DMA) faces challenges in achieving consistent EPS due to its financial health issues and operational stagnation.** To improve EPS consistency, DMA should focus on the following strategies:
1. **Financial Health Restoration**: Enhance financial health by improving profitability and reducing financial losses. This can be achieved through operational efficiency improvements, cost management, and strategic investments.
2. **Portfolio Optimization**: Optimize the portfolio by reducing holdings in underperforming assets and reallocating resources to more profitable investments. This may involve selling non-core assets, restructuring the portfolio, or adding new investments that align with the fund's objectives.
3. **Income Generation Focus**: Emphasize income generation by investing in assets that provide consistent and stable income streams. This could include increasing the allocation to dividend-paying stocks or income-generating real estate investments.
4. **Capital Appreciation Strategies**: Implement strategies focused on capital appreciation, such as increasing the allocation to growth stocks or participating in potential mergers and acquisitions that can enhance the fund's value.
5. **Risk Management**: Strengthen risk management practices to mitigate the impact of market volatility and economic downturns on the fund's earnings. This includes diversifying the portfolio, setting risk limits, and regularly reviewing and adjusting the risk profile.
6. **Operational Improvements**: Address operational issues by implementing more efficient management practices, reducing costs, and improving the overall operational margin. This may involve streamlining operations, reducing waste, and improving productivity.
7. **Strategic Investments**: Make strategic investments in sectors or asset classes that are expected to perform well in the current economic environment. This could include technology, healthcare, or other sectors with growth potential.
By focusing on these strategies, DMA can work towards improving its EPS consistency and enhancing the overall performance of the fund.