Saba Capital’s flagship fund is on track for a disappointing year, with the $1.9bn vehicle down 6.5% year-to-date to 21 November, extending a multi-year period of weak performance for the credit-focused strategy, according to a report by the Financial Times.
The decline comes despite buoyant equity markets and only brief bouts of volatility in credit, undermining Weinstein’s long-running thesis that markets remain vulnerable to severe dislocations.
The performance shortfall follows a 3.4% gain in 2024 and a 16.9% loss in 2023. The flagship last delivered outsized returns in 2022, when it surged 22% during a sharp cross-asset sell-off — a move that appeared to validate Weinstein’s view that global equities could face a Japan-style, decades-long bear market. Instead, global stocks have since rallied broadly, staging a strong rebound this year after President Donald Trump’s April “liberation day” tariffs triggered only temporary turbulence.
Saba’s tail-risk strategy has fared even worse. The firm’s $1bn carry-neutral tail hedge master fund is down 12.7% YTD, deepening losses of 2.7% in 2024 and 16.7% in 2023. Designed to protect investors in severe drawdowns, the fund has struggled as markets continue to grind higher and volatility remains subdued.
The weak trading results contrast with Saba’s success on the activism front, where Weinstein has become one of the most aggressive agitators in the closed-end fund arena. The firm has mounted high-profile campaigns against managers including BlackRock, Eaton Vance, Baillie Gifford and Janus Henderson, capitalising on persistent discounts to NAV across closed-end structures.
Saba reached a settlement with BlackRock in January following an 18-month governance battle involving multiple funds. In 2025, Weinstein has concentrated much of his activism on UK investment trusts, pushing boards to narrow discounts, overhaul fee structures, or — in several cases — liquidate vehicles entirely or convert them to more investor-friendly formats.
