Saturday, 27 August 2016
Last updated 10 hours ago
Mar 22 2013 | 1:41pm ET
Betting against JPMorgan Chase's "London whale" was a no-brainer, a prominent hedge fund manager who profited handsomely from the trade said.
Saba Capital Management founder Boaz Weinstein told a Manhattan conference yesterday, "that was a fairly easy and obvious trade to do." And he reflected on the importance of JPMorgan's predicament, which cost it at least $6 billion.
"It's less about the money that was made—although it was substantial—and more about the historical significance of one entity being on the other side of this trade," Weinstein said.
"That whole story was worth the attention that the media gave it."
Weinstein said Saba pounced on the trade when he noticed anomalies in a credit index. He didn't realize at first that he was betting against JPMorgan.
"I think it's pretty clear from the Senate paper that it was not a hedge, it was a bet," Weinstein said, referring the JPMorgan's claim last year that the trades were a hedge.