Local Hedge Fund Manager Makes Peace With Canada

I mean, who could stay mad at this face?
Author:
Updated:
Original:
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]

Related