Boaz Weinstein Wins Another Round With Canadian Pension Fundby and
Judge dismissed claim of breach of fiduciary duties this week
Decision leaves one claim remaining in Canadian fund’s lawsuit
Boaz Weinstein’s Saba Capital Management won another round in a legal battle with a Canadian pension fund when a judge dismissed a claim that the firm breached its fiduciary duties.
The decision by New York State Supreme Court Justice Anil Singh leaves just a breach of contract claim remaining in the Public Sector Pension Investment Board’s lawsuit in which Weinstein and Saba were accused of manipulating the value of the pension fund’s investment in McClatchy Co. bonds.
In February, Singh threw out claims that Weinstein induced Saba to breach its contract with the Canadian fund and conspired with the firm to miscalculate the value of the bonds in order to personally benefit. Singh declined to throw out the breach of contract and breach of fiduciary duty claims. In a decision posted Tuesday, Singh granted Saba’s request to reconsider his decision and dismissed the breach of fiduciary duty claim, saying it duplicated the breach of contract allegation.
The ruling comes as Saba’s main fund has gained 13.6 percent this year through May 6, according to a person with knowledge of the returns. It’s bucking the trend of hedge funds overall, which have posted a 0.6 percent gain in the first four months, according to data compiled by Bloomberg. Saba manages $1.8 billion out of New York.
PSP didn’t immediately return an e-mail seeking comment on the decision and Seth Schwartz, an attorney representing the fund, declined to comment in a telephone interview.
The case is Public Sector Pension Investment Board v. Saba Capital Management LP, 653216/2015, New York State Supreme Court, New York County (Manhattan).