Saba Rebounds in April After Posting Worst Month Ever in March

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Saba CIO Boaz Weinstein
Boaz Weinstein, Chief Investment Officer Saba Capital Management LP and the former co-head of Deutsche Bank AG’s credit business, has struggled since the middle of 2012 as central banks pushed down interest rates and suppressed volatility, making it harder to exploit price differences between securities. Photographer: Peter Foley/Bloomberg

Boaz Weinstein’s credit hedge fund rebounded 7.3 percent in April after posting its worst month ever in March, according to two people briefed on the returns.

The gains, helped by a surge in Hong Kong equity volatility, reversed a loss of 6.3 percent in March for Weinstein’s Saba Capital Partners fund, according to one of the people, who asked not to be identified because the information is private. The fund, which was down 7.9 percent in the first three months of the year, has since pared its 2015 loss to 1 percent.

Weinstein, 41, who previously co-ran Deutsche Bank AG’s credit business before starting Saba Capital Management in 2009, has racked up losses for three consecutive years amid reduced swings in prices. He lost 11 percent last year, failing to profit even when volatility increased.

The fund had 36 percent in convertible bonds, equities and equity derivatives, according to a February report, a copy of which was obtained by Bloomberg News. Bets on or against credit securities comprised 29 percent. The report also showed that almost three-fourths of the fund was invested in the U.S., 15 percent in Europe, and about 8 percent in Asia.

The average hedge fund fell 0.3 percent in March and is up 1.9 percent this year, according to data compiled by Bloomberg. Saba, based in New York, manages about $1.5 billion and has attracted about $200 million in client money this year, according to one of the people.

Strong Start

Weinstein ran an internal fund at Frankfurt-based Deutsche Bank before spinning off Saba, the Hebrew word for grandfather, in April 2009. He initially had strong returns, gaining 11 percent in 2010 and 9.3 percent in 2011 when the average hedge fund lost money. Saba subsequently lost 3.9 percent in 2012 and 6.8 percent the following year. Assets at Saba have declined from a peak of about $5.5 billion two years ago.

Jonathan Gasthalter, a spokesman for Saba at Sard Verbinnen & Co., declined to comment on the returns.

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