In a recent filing with the Securities and Exchange Commission, Saba Capital Management, L.P., led by Boaz Weinstein, disclosed significant stock acquisitions in Eaton (NYSE:ETN) Vance California Municipal Bond Fund (NYSE:EVM). On November 21 and 22, Weinstein purchased a total of 158,191 shares at a consistent price of $9.35 per share. The transactions amounted to a total value of approximately $1.48 million.
Following these purchases, Saba Capital's holdings in Eaton Vance now stand at 3,492,895 shares. As a ten percent owner, Weinstein's increased investment reflects a substantial commitment to the fund. These transactions were carried out indirectly, as indicated in the filing.
The acquisitions highlight Saba Capital's continued interest in Eaton Vance, a fund known for its focus on municipal bonds, which can offer tax-exempt income. Investors often look to such filings for insights into the strategies and market positions of influential investment firms like Saba Capital.
InvestingPro Insights
Saba Capital's recent acquisition of Eaton Vance California Municipal Bond Fund (NYSE:EVM) shares aligns with several key financial indicators from InvestingPro. The fund's attractive dividend yield of 5.33% as of the latest data supports its appeal to income-focused investors like Saba Capital. This dividend strength is further underscored by an InvestingPro Tip noting that EVM "has maintained dividend payments for 23 consecutive years," demonstrating a long-term commitment to shareholder returns.
The fund's financial health appears solid, with InvestingPro data showing that liquid assets exceed short-term obligations. This liquidity position may have factored into Saba Capital's decision to increase its stake, as it suggests financial stability.
Another InvestingPro Tip indicates that the stock "generally trades with low price volatility," which could be attractive for investors seeking steady performance in their portfolio. This characteristic aligns well with the nature of municipal bond funds, which are often sought for their relative stability.
It's worth noting that while the fund has seen a revenue decline of 7.75% over the last twelve months, it remains profitable, as highlighted by another InvestingPro Tip. This profitability, combined with the fund's consistent dividend history, may explain Saba Capital's confidence in increasing its position despite the revenue challenges.
For investors interested in a deeper analysis, InvestingPro offers additional tips and metrics beyond those mentioned here. The platform lists a total of 10 tips for EVM, providing a comprehensive view of the fund's financial health and market position.
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