Saba Capital Quietly Builds 13% Stake in Ellsworth Growth & Income, Betting on Convertible‑Security Upside

Saba Capital’s Steady Build at Ellsworth Growth & Income

Saba Capital Management, L.P. has quietly ramped up its stake in Ellsworth Growth & Income (ELLSWORTH) over the past weeks, adding nearly 6,000 shares on 29 Oct 2026 and bringing its holdings to about 1.8 million common shares. The purchases were executed at roughly $11.8 per share, a modest discount to the current market price of $18.77. The most recent transaction, a 5,975‑share purchase, is the largest single block in a month of incremental buying that began in mid‑August.

What the Buying Wave Signals

While the trades are routine and non‑discretionary—filed under SEC Form 4 and carried out at the prevailing bid price—they suggest Saba’s confidence in the fund’s long‑term value proposition. The firm’s cumulative buying has increased its exposure to approximately 12–13 % of the fund’s total shares outstanding, a sizeable position for a fund manager focused on convertible‑security strategies. For investors, the incremental stake can be read as a vote of confidence: Saba is positioning itself to benefit from any upside in the fund’s portfolio, which includes high‑yield, high‑growth equities and convertible bonds that can convert into underlying assets if the market turns favorable.

Historical Trading Patterns

Saba’s recent activity is part of a broader buying trend that has spanned from August to October 2026. The firm purchased between 1,200 and 56,000 shares in single trades, often in the $11.5–$12.5 price range, and has consistently increased its holdings by roughly 5–6 % each month. Historically, Saba has also sold large positions—most notably in February 2026 when it divested more than 26,000 shares—but the net effect of the past year has been a net acquisition of over 1.2 million shares. This disciplined accumulation pattern reflects a long‑term investment thesis rather than a speculative play.

Implications for Investors

For current shareholders, Saba’s growing stake may provide a degree of stability; large institutional ownership can mitigate volatility and signal confidence in management’s strategy. However, the fund’s price has slipped 14.57% year‑to‑date, and its 52‑week low of $18.41 is close to the current price. Investors should weigh Saba’s incremental buying against the fund’s underlying portfolio—predominantly convertible securities—which can offer downside protection but also expose the fund to interest‑rate risk. If Saba’s thesis proves correct and the convertible holdings convert to appreciated equities, the fund’s price could rebound, rewarding long‑term investors.

Who Is Saba Capital Management?

Founded in 2001, Saba Capital Management, L.P. is a private investment firm that focuses on event‑driven and macro‑strategies. The firm is known for disciplined, patient capital deployment across a range of fixed‑income, equity, and convertible instruments. Its recent buying spree at ELLSWORTH aligns with its broader mandate to capture upside in high‑yield, high‑growth sectors while managing risk through diversified, actively managed portfolios. The firm’s historical transaction data show a pattern of incremental accumulation and selective divestiture, underscoring a long‑term, research‑driven investment philosophy that seeks to unlock value as market conditions evolve.

For investors monitoring ELLSWORTH, Saba’s steady accumulation signals a belief in the fund’s convertible‑security strategy and suggests that the firm sees potential upside that could benefit shareholders who stay the course.