Thursday, 24 July 2014
Last updated 8 hours 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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…