What’s a couple billion here or there? NBD, is what it is.

The combination of performance and fund raising makes Weinstein one of the more successful hedge fund managers to emerge from the 2008 financial crisis. His fund was considered one of the more promising launches of 2009, and it seems he has delivered on that promise. But it has not always been smooth sailing for the 37-year-old, thanks in part to financial crisis-related woes. As was widely reported at the time, Weinstein’s trading desk was hit hard during the credit crunch. The San Diego County Employees Retirement Association’s investment committee voted not to place money with Saba this summer, because of the losses that he incurred while at Deutsche Bank in 2008.

Apparently the pension board’s outside portfolio advisor, Lee Partridge of Salient Partners, neglected to mention Weinstein’s blow up at Deutsche Bank to SDCERA, and the board was caught off guard when a member brought up the losses at a meeting. But in August, the board of the $8 billion pension fund changed its mind and voted to invest $100 million with Saba. “We put [Weinstein’s] losses at Deutsche Bank into perspective vis a vis how much he was managing for the bank, and his entire career,” says Michelle Butler, a spokeswoman for SDCERA. “Yes, he lost a lot of money, along with many others during the financial crisis, but it was small compared with he magnitude of what he managed and the financial crisis.” In the end, Butler says that investing in Saba was an opportunity “not to be missed.”

Saba Capital: A Hedge Fund Bright Spot [Fortune/Katie Benner]

14 comments (hidden to protect delicate sensibilities)
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Comments (14)

  1. Posted by Guest | September 9, 2011 at 2:40 PM


    – B. Madoff

  2. Posted by 2StopShop | September 9, 2011 at 2:41 PM

    Despite popular east coast opinion, San Diego and San Francisco are in fact not one in the same.

  3. Posted by Backdoor_Bess | September 9, 2011 at 2:50 PM

    Wow, they have a shitty DD process……….

    ~ The Wilpons

  4. Posted by Backdoor_Bess | September 9, 2011 at 2:56 PM

    and which one is German for whale's vagina?

  5. Posted by Guest | September 9, 2011 at 3:05 PM

    I'm eagerly awaiting my $100 million investment from SDCERA.

    – J. Meriwether

  6. Posted by Golden Boy | September 9, 2011 at 3:11 PM

    Call me.

    -John Paulson

  7. Posted by 25th Hour Trader | September 9, 2011 at 3:30 PM

    Let me get this straight. Weinstein has several good years, blows up and is running a multi billion dollar fund now. I have several good years, blow up and am forced to rob convenience stories dressed as Gumby to make ends meet. There is no justice in this world.

    V. Niederhoffer

  8. Posted by N Taleb | September 9, 2011 at 3:44 PM

    oh boy, the farmer is coming to feed me again! This farmer is great. Wonder what happened to all those older turkeys that he used to feed until November last year?

  9. Posted by Steve | September 9, 2011 at 3:52 PM

    He's the filet of the Weinstein's.

  10. Posted by early_hominid | September 9, 2011 at 3:54 PM

    "the magnitude of the financial crisis . . . " Pretty sure that's the wrong metric.

    Flip your Carrera, crush 12 toddlers crossing street? Sure it's bad, but big picture – Holocaust, Rwanda, Cambodia – it's pretty eh mass-murder-wise, so you know, here's the keys to the Spyder.

  11. Posted by guest | September 9, 2011 at 4:03 PM

    “We put [Weinstein's] losses at Deutsche Bank into perspective vis a vis how much he was managing for the bank, and his entire career,”

    He's good at returning -20% on *REALLY BIG* amount of money. Anyone can do it on a small portfolio, but at 1.5B you really have to fight the law of large numbers. Getting around the whole mean reversion issue shows true skill.

  12. Posted by Dumbass | September 9, 2011 at 4:39 PM

    Why shouls anyone port alpha???

  13. Posted by The Stew | September 9, 2011 at 4:48 PM

    If I had only followed his advice, I'd have a million dollars today. Provided I started out with $100 million dollars.

  14. Posted by Guest CFA | September 12, 2011 at 12:40 PM

    Memo from the Desk of Brian Moynahan, CEO

    To: All BAC Executives

    RE: New Investment Management Business Strategy

    Effective immediately, redirect all resources to all-out marketing campaign on all California Government Employee Pension Funds (except CalPERS–what a pain in the @ss they are). Use: "We didn't lose anywhere near what Bear Stearns and Lehman lost" as the headline. It's a guaranteed sale.

    If we don't have at least the Santa Cruz Sanitation Workers Pension Fund and the Barstow County Health Workers Retirement Fund signed up by Friday, you're all fired (consider it a head start on the 40k layoffs to come).