Saba Falls 6.8% In '13 After Rough December

Jan 17 2014 | 2:24pm 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.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

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

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of