J Studios The Destra Multi-Alternative Fund ( NYSE: DMA ) is a closed-end fund, or CEF, that provides a rather unique strategy that might appeal to some investors. The fund’s sponsor is not a company that is especially well known, so this admittedly might lead some people to be quite cautious. However, the company provides investment services to several funds that many readers are likely to be familiar with: Destra Capital In particular, we see three of the Flaherty & Crumrine preferred stock funds, which had an excellent reputation before 2022.
They have fallen off a bit lately, but this is mostly due to the incredibly high level of leverage that is employed by these funds, and not through any real fault of Destra Capital. We also see that Destra Capital provides investment services to the Ares Dynamic Credit Allocation Fund ( ARDC ), which has long been one of the better debt funds available on the market. I have discussed and recommended that fund several times, and even hold it in my portfolio.
Thus, just because Destra might not be a household name does not mean that investments offered by or affiliated with the company are ones that should be avoided. Rather, the other funds that use Destra as an investment services provider give us a great deal of confidence that the fund manager should not be ignored. The yield of the Destra Multi-Alternative Fund is lower than many of its peers.
It is difficult to find an actual yield for it, as the fund has not paid a distribution.
