Saba Capital

  • 26 Jun 2012 at 5:02 PM

Boaz Weinstein Finished Having His Way With Big Fish

Saba Capital Management’s Boaz Weinstein recently exited a now famous and profitable credit derivative bet against JPMorgan, according to sources familiar with the trade. In May, JPMorgan reported a $2 billion trading loss in its chief investment office, due to large bets on an obscure group of indexes that track the performance of corporate bonds, including the Markit CDX NA IG Series 9 index. Weinstein’s Saba, among other funds, bet against that trade. Saba, which has liquidated its position in its entirety, “exited directly to JPMorgan’s CIO office,” according to a source familiar with the hedge fund. Weinstein, a former Deutsche Bank trader, was one of the early proponents of a trade that involved buying Investment Grade Series 9 10-Year Index CDS, discussing it at the Harbor Investment Conference in February. Ironically, the conference was held at JP Morgan’s Madison’ Avenue offices. [Reuters]

Boaz Weinstein’s Got His Speargun Aimed And Ready To Fire

“I think there are still very talented traders at banks that could work out very well in the buy side. So, yes, we are looking to grow…If you hire one, it’s like shark teeth. There’s another five behind it.” [Bloomberg TV]

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