Local Hedge Fund Manager Makes Peace With Canada

I mean, who could stay mad at this face?
Saba Capital naval forces sack Toronto. By Owen Staples [Public domain], via Wikimedia Commons

Saba Capital naval forces sack Toronto. By Owen Staples [Public domain], via Wikimedia Commons

A year and a half ago, the Mounties launched a legal raid on Saba Capital, the New York hedge fund run by former Deutsche Bank wunderkind (it’s true; they used to have those, and even they lost the bank billions of dollars) Boaz Weinstein. In effect, the Mounties’ pension fund alleged that Weinstein had manipulated the price of a couple of bonds to screw Canada’s finest out of $12 million—and that’s 12 million American dollars, serious money north of the border. Ridiculous, right? Like we said, Weinstein doesn’t sweat over a $1.8 billion loss; he doesn’t even start paying attention until we’re dealing in nine figures. He was, of course, having none of it, vowing never to settle the case for even a penny—not even a Canadian penny.

Since then, a few of the Public Sector Pension Investment Board’s claims have been tossed, and now cooler heads have prevailed. A settlement has been reached, a confidential treaty signed, and even though its terms are secret, we suspect it cost Saba and Weinstein considerably more than a penny.

“The parties have agreed to settle this litigation on the following basis: they have resolved this matter as a commercial dispute involving a good faith disagreement over the valuation of two highly illiquid corporate bonds,” they said in identical statements.

Boaz Weinstein’s Saba Hedge Fund Settles Investor Lawsuit [WSJ]


Boaz Weinstein Kills it in May . . .

May was the worst month for hedge funds since October 2008. The HFRX Global Hedge Fund Index lost 2.6 percent. Don’t tell that to Boaz Weinstein. Yeah, he might have lost $1 billion at Deutsche Bank, but that’s old news. Boaz’s Saba Capital (Hebrew for grandfather) bucked the trend in May, up 1.6 percent for the month and 5.8 percent for the year.