Saba Capital Management founder Boaz Weinstein is no stranger to a big score, nor to the publicity that tends to come with it. And he’s got them both again, no matter how much kvetching he might do about how little publicity he wants, having given two substantive interviews to Institutional Investor laying out just how much he’s been killing it while coronavirus has been killing 400,000 people.
Not that Weinstein knew or even suspected the nightmare about to strike the globe. He didn’t need to. He just needed to know it made no sense for high-yield CDS on airlines to cost the same as high-yield CDS on Verizon.
“I was seeing the most incredible mispricings I’d ever seen,” said Weinstein in an extended telephone interview with Institutional Investor in mid-May, the first of two. “I’m still not over how ridiculous it was….” Weinstein waited for the correction he was sure was in the offing. “It was not then about Covid,” he emphasizes. “It’s not that we foresaw this human tragedy.”
How ridiculous was it?
For just the first two weeks of March, the flagship Saba Capital Master Fund spiked 33 percent, according to a note sent to investors that was reviewed by Institutional Investor. A second offering that was designed specifically to benefit from steep market selloffs, the Saba Capital Tail Fund, was up an astounding 99 percent….
This year through May, the Saba Capital Master was up more than 80 percent, according to a person familiar with the fund.