Tags: Boaz Weinstein, Deutsche Bank alums, Hedge Funds, investors, putting losses into perspective, Saba Capital, Saba Capital Tail Risk Fund, San Diego County Employees Retirement Association, that's nice
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]