Saba Exits Trades That Profited From JPMorgan's Pain

Jun 27 2012 | 12:01pm ET

One of the hedge funds that harpooned JPMorgan Chase's London Whale has exited the trades that turned it a big profit and saddled the bank with a huge loss.

Saba Capital Management has closed the credit-default swap index trades it opened after noticing the dislocations caused by the huge trades made by JPMorgan's Bruno Iksil. Saba, which has $5 billion in assets, wasn't the only hedge fund to jump on that opportunity—which cost JPMorgan at least $2 billion—but media reports, including an extended analysis in The New York Times—gave Saba and founder Boaz Weinstein much of the credit.

It is unclear how large Saba's exposure was or how much it made. The firm has returned 2.3% this year through last week.

Another of the hedge funds that profited from JPMorgan's predicament, BlueMountain Capital Management, has been engaged by the bank to help it unwind the disastrous derivatives trades.


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

With NFL season on the horizon, it’s time to take a look at our Fantasy Football value picks. Last year, we nailed it on Drew Brees, Jordan Howard, Frank Gore and Dwayne Allen. We missed pretty badly on Duke Johnson, Demaryius Thomas, Mohammed Sanu and Eli Manning.