Ellsworth Growth Fund at 11% Discount, Saba Capital Holds 12.3% Stake

Key Facts

1Ellsworth Growth and Income Fund trades at an -11% discount, with Saba Capital holding a ~12.3% stake.

2The fund offers a 5.8% yield, with a 19% distribution hike.

3The fund has shown recent outperformance versus the S&P 500.

As activist investors increasingly target closed-end funds, Ellsworth Growth and Income Fund (ECF) trades at an 11% discount to net asset value, with Saba Capital holding a 12.3% stake. The fund offers a 5.8% yield following a 19% distribution hike. It has recently outperformed the S&P 500, according to a Seeking Alpha analysis.

Saba Capital is known for its activist approach with closed-end funds, often pushing for structural changes like open-ending or tender offers to narrow discounts. The 19% distribution hike signals management confidence in cash flows and future performance. The fund's outperformance versus the S&P 500 further enhances its appeal for yield-seeking investors.

The stock closed at $13.09 on June 25, 2026, within a daily range of $13.05–$13.34. Saba Capital's stake and the distribution hike could act as catalysts to narrow the discount in coming months, especially if structural actions like share buybacks or open-ending are announced. Investors are also watching the next shareholder meeting for activist proposals.