Saba Capital Management buys 22,756 shares of Eaton Vance California Municipal Bond Fund.

Eaton Vance California Municipal Bond Fund [EVM] has recently disclosed that Saba Capital Management, L.P., a 10% owner of the fund, has made a notable acquisition. Specifically, on June 20, 2023, Saba Capital Management acquired 21,756 shares of Eaton Vance California Municipal Bond Fund at a price of $8.78 per share.

On June 11, 2025, Saba Capital Management, L.P. (Trades, Portfolio) executed a significant transaction by acquiring an additional 57,844 shares of Eaton Vance California Municipal Bond Fund (EVM, Financial). This acquisition brings the firm's total holdings in EVM to 4,416,002 shares. The transaction was completed at a price of $8.74 per share, and EVM now represents 1.05% of Saba Capital Management's portfolio, accounting for 17.90% of the firm's total holdings in the stock. This strategic move highlights the firm's continued interest in municipal bond funds, which are known for providing tax-exempt income.

About Saba Capital Management, L.P. (Trades, Portfolio)
Saba Capital Management, L.P. (Trades, Portfolio), headquartered at 405 Lexington Avenue, New York, is a prominent investment firm known for its expertise in credit and equity markets. The firm manages an equity portfolio valued at $3.68 billion, with a focus on financial services and consumer cyclical sectors. Saba Capital Management's investment philosophy emphasizes value investing and strategic asset allocation. Among its top holdings are PIMCO Dynamic Income Strategy Fund (PDX, Financial) and BlackRock Capital Allocation Trust (BCAT, Financial), reflecting a diversified approach to investment. The firm is recognized for its adeptness in navigating complex market environments and identifying undervalued opportunities.

Details of the Stock Transaction
The recent transaction involved the addition of 57,844 shares to Saba Capital Management's existing position in EVM. This move slightly increased the firm's portfolio allocation to EVM, which now constitutes 1.05% of its total portfolio. The transaction's impact on the firm's holdings in EVM is significant, with the stock now representing 17.90% of the firm's total holdings in the stock. This strategic decision underscores the firm's confidence in EVM's potential to deliver tax-exempt income and its alignment with the firm's investment objectives.

Overview of Eaton Vance California Municipal Bond Fund
Eaton Vance California Municipal Bond Fund is an investment company focused on providing current income exempt from regular federal income tax, including alternative minimum tax, and state-specific taxes. The company caters to a diverse clientele, including individual investors, institutional investors, and financial professionals. With a market capitalization of $217.862 million, EVM is a notable player in the asset management industry. As of the latest data, the stock is trading at $8.83 per share.

Financial Metrics and Performance of EVM
Analyzing EVM's financial metrics reveals a [GF-Score](https://www.gurufocus.com/term/gf-score/EVM) of 42/100, indicating potential challenges in future performance. The fund's [Balance Sheet Rank](https://www.gurufocus.com/term/rank-balancesheet/EVM) stands at 5/10, reflecting moderate financial strength. Despite a year-to-date price change of -5.56%, EVM has demonstrated a robust 3-year revenue growth of 60.40%. However, the stock's [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/EVM) is 3/10, suggesting room for improvement in profitability metrics. These indicators provide a mixed outlook on EVM's financial health and growth prospects.

Market Context and Implications
The broader market context for asset management companies like EVM is characterized by fluctuating interest rates and evolving regulatory landscapes. Saba Capital Management's increased stake in EVM may signal a strategic bet on the resilience of municipal bond funds in providing stable, tax-exempt income. For value investors, this transaction could indicate potential opportunities in the municipal bond sector, especially for those seeking tax-efficient investment vehicles. The firm's decision to bolster its position in EVM reflects a calculated approach to navigating current market conditions.

Conclusion
In summary, Saba Capital Management's recent acquisition of additional shares in Eaton Vance California Municipal Bond Fund underscores the firm's strategic focus on tax-exempt income opportunities. While EVM's financial metrics present a mixed picture, the firm's increased stake suggests confidence in the fund's long-term potential. As market conditions continue to evolve, the performance of EVM will be closely watched by value investors seeking to capitalize on municipal bond funds' unique advantages. The transaction highlights the importance of strategic asset allocation in achieving investment objectives.

References:
[1] https://www.gurufocus.com/news/2932813/saba-capital-management-lp-increases-stake-in-eaton-vance-california-municipal-bond-fund