Wednesday, 22 February 2017
Last updated 24 min ago
Jan 17 2014 | 1:24pm ET
Saba Capital Management suffered its second-straight losing year in 2013, as lack of volatility in the markets left the firm with few opportunities.
The New York-based hedge fund, led by former Deutsche Bank star trader Boaz Weinstein, fell 6.8% last year, much of it in December, when it lost 4.4%. Saba lost 3.9% in 2012.
December's loss was due to a bet that European stocks would beat high-yield credit, Saba told clients.
The firm's assets under management dropped from $5.5 billion in the middle of last year to $3.9 billion at the beginning of December. Still, Saba investor Gregg Hymowitz of EnTrust Capital said he's not worried.
"Boaz had a phenomenal 2011," Hymowitz told Bloomberg News of Saba's last winning year, when it returned 9.3%. "Since then, he has positioned his portfolio to take advantage of volatility—and we haven't seen it."
Early returns for 2014 favor Hymovitz's confidence: Saba is up about 2.5% this month, according to Bloomberg.