Is DM's Q4 2023 EPS surge a sign of long-term growth?

**Destra Multi-Alternative Fund (DMA) does not appear to be experiencing a Q4 2023 EPS surge.** In fact, the available data suggests that the fund's performance has been under pressure, with a negative return on equity (ROE) of -8.23% and a negative return on assets (ROA) of -6.79.

1. **Recent Performance**: The stock price of DMA has seen a decrease of 49.58% since its IPO, and it has not shown significant gains recently. In fact, since the transaction with Saba Capital Management, L.P., the stock price has gained only 3.6%. This modest increase is not indicative of a broader long-term growth trend.
2. **Financial Health Concerns**: The fund's financial health is a cause for concern, with negative ROE and ROA indicating that the fund may be losing money relative to its equity and assets, respectively. A negative ROE suggests that the fund is generating losses that exceed its net income, which is a red flag for long-term profitability.
3. **Saba Capital Management's Stake**: Saba Capital Management, L.P. has increased its stake in DMA, purchasing additional shares on September 13, 2023. This move may be seen as a strategic investment by Saba, but it does not necessarily indicate long-term growth for DMA. The firm's decision to acquire more shares could be based on various factors, including the fund's potential for income generation or the firm's broader investment strategy.
4. **Fund Structure Changes**: DMA has recently announced a change in its structure, transitioning from a perpetual fund to a term fund with a specific expiration date. While this change may have implications for the fund's future, it does not necessarily signal long-term growth. The fund's term structure could be seen as a risk or an opportunity, depending on the investor's perspective.

In conclusion, the available data does not support the notion that DMA's Q4 2023 EPS surge is a sign of long-term growth. The fund's performance, financial health, and recent structural changes suggest that careful consideration is needed before drawing such conclusions. Investors should monitor the fund's future performance and any additional strategic moves by management or major shareholders.