Destra Multi-Alternative Stock Price, News & Analysis

Destra Multi-Alternative Fund (NYSE: DMA) is a closed-end management investment company that trades on the New York Stock Exchange under the symbol DMA. It is described as a non-diversified, closed-end management investment company that operates as an interval fund with a continuous offering of fund shares. The fund’s stated investment objective is to seek returns from capital appreciation and income, with an emphasis on income generation and long-term performance that is non-correlated to broad stock and bond markets.

According to multiple fund communications, Destra Multi-Alternative Fund is positioned as a core alternative solution. It invests primarily in alternative strategies and asset classes. The fund’s portfolio is centered on the Validex Dynamic Alpha hedged equity process, and this core allocation is further diversified by allocations to direct private equity and alternative income sub-categories such as real estate and alternative credit. In other descriptions, the fund notes that it invests in alternative strategies and asset classes including real estate, direct private equity, alternative credit, and hedge strategies.

The fund has historically maintained a fundamental policy regarding industry concentration. Earlier disclosures and proxy materials explain that the fund’s existing fundamental concentration policy required, under normal circumstances, that it invest over 25% of its net assets in the securities of companies in the real estate industry. A later proxy proposal and subsequent shareholder vote describe a revision to this policy. Shareholders approved a proposal to revise the fundamental policy regarding industry concentration so that the fund is no longer required to maintain a concentration of more than 25% of its net assets in real estate-related investments. The change is described as providing the fund with increased flexibility to pursue attractive investment opportunities while continuing to seek its long-term investment objectives.

Fund communications also explain that the investment adviser and sub-adviser have assessed relative risk and reward in the real estate industry. Destra Capital Advisors LLC (“Destra”) and Validus Growth Investors LLC (doing business as Validex Global Investing, “Validex”), the fund’s sub-adviser, have stated in proxy materials that revising the concentration policy allows greater flexibility in seeking attractive opportunities. They noted that, relative to other opportunities in a higher-rate environment, they believed the risk and reward in real estate was not attractive over recent years, and they have been reducing real estate exposure, especially in private securities. The removal of the 25% concentration requirement is described as allowing more careful management of exposure to this rate-sensitive asset class.

Destra Capital Advisors LLC, based in Bozeman, Montana, serves as the fund’s investment adviser and secondary market servicing agent. In one description, Destra Capital Advisors is said to have been founded in 2008 and to have been purpose-built to help financial professionals lead clients to better wealth outcomes through alternative investment strategies and technologies and solutions. Multiple fund releases identify Destra as responsible for investment advisory services and secondary market servicing for the fund.

Validus Growth Investors LLC, doing business as Validex Global Investing, serves as the fund’s investment sub-adviser. Fund news releases describe Validex as an asset management firm that specializes in asymmetric risk-reward strategies aimed at capturing high-growth opportunities at emerging market inflection points. Validex’s work for the fund is frequently referenced through the Validex Dynamic Alpha process, which is characterized in fund communications as a hedged equity process and as a source of dynamic alpha-seeking hedging strategies. Statements from the portfolio manager and CIO of Validex in fund press releases note that this process has been a significant and growing contributor to fund performance and that the fund’s portfolio has been structured with Dynamic Alpha at the center, with exposures to alternative credit, real estate, and private equity positioned around it as diversifiers and potential sources of non-correlated returns.

The fund has also communicated changes to its distribution policies over time. In one announcement, the fund noted that its Board of Trustees approved a monthly distribution policy beginning in March of a particular year, with declared per-share dividends for several months. Later communications describe distribution increases for subsequent months and outline that the Board of Trustees approved higher distribution rates for specified periods. These releases emphasize that a portion of each distribution may be treated as paid from sources other than net investment income, including short-term capital gain, long-term capital gain, or return of capital. They also explain that, as required by Section 19(a) of the Investment Company Act of 1940 and Rule 19a-1 thereunder, notices will be distributed to shareholders if a portion of a monthly distribution is derived from sources other than undistributed net investment income, and that the final determination of the source and tax characteristics of distributions is made after the fund’s fiscal year end.

Earlier communications also noted a shift in the fund’s term structure. The fund announced that its Board of Trustees approved a change from a perpetual term to a term that expires pursuant to its Amended and Restated Agreement and Declaration of Trust. The Declaration of Trust provides that the fund, unless certain targets are met, will dissolve at the close of business on March 31, 2027, concurrent with the end of its 2026–27 fiscal year, with the possibility of extensions under specified conditions. Additional disclosures mention an Amended and Restated Declaration of Trust that includes a forum selection clause and the filing of a related Form 8-K.

The fund has also described changes to its portfolio holdings disclosure practices. A Board-approved change shifted the frequency of full portfolio holdings disclosure from quarterly to monthly. Under the updated policy, the fund discloses its complete portfolio holdings on its publicly available website at the end of each month, with a minimum lag time of ten calendar days. Previously, the fund released its top 10 holdings monthly and full portfolio holdings quarterly with a longer lag. The fund’s President stated that this increased transparency is intended to help shareholders and potential new investors better understand the fund’s unique investment profile and the opportunities that its alternative investments may present.

Destra Multi-Alternative Fund’s shares are identified as common shares registered under Section 12(b) of the Securities Exchange Act of 1934, and an SEC filing lists the title of each class as common shares, trading under the symbol DMA on the New York Stock Exchange. Multiple fund communications note that shares of the fund can be purchased on the New York Stock Exchange through any securities broker. The fund’s regulatory filings, including proxy statements and current reports on Form 8-K, describe its governance structure as a Delaware statutory trust with a Board of Trustees divided into classes, and they outline processes for shareholder meetings, trustee elections, and proxy voting.

Overall, based on the available information, Destra Multi-Alternative Fund is an exchange-listed, closed-end, non-diversified management investment company that focuses on alternative strategies and asset classes. It emphasizes long-term performance that is intended to be non-correlated to traditional stock and bond markets, with a portfolio structure that centers on the Validex Dynamic Alpha hedged equity process and incorporates allocations to direct private equity, real estate, alternative credit, and hedge strategies. Its adviser, Destra Capital Advisors LLC, and sub-adviser, Validex Global Investing, are both based in Bozeman, Montana according to fund disclosures, and they play central roles in the fund’s investment management and portfolio construction.