Saba Capital

KYCO: Know Your Company

Reveal Profile

10 December 2025

1) Overview of the Company

Saba Capital Management, L.P. is a global alternative asset management firm founded in 2009 by Boaz Weinstein that seeks to deliver superior risk-adjusted returns through credit relative value strategies and capital structure arbitrage. Headquartered in the historic Chrysler Building in New York with an additional office in London, the firm manages approximately $6 billion in assets under management as of August 2025. Saba is 100% employee-owned and operates as a registered investment adviser with the SEC and CFTC.

The firm employs 75-79 professionals and specializes in three core strategies: Credit Relative Value (flagship strategy focusing on dislocations across capital structures), Tail Hedge (cost-effective portfolio protection during market stress), and Closed-End Funds (activist investing in funds trading at discounts to net asset value). Saba’s investors are predominantly institutions including corporate pensions, public pensions, foundations, fund of funds, endowments, and family offices.

Saba has gained recognition as one of the world’s largest investors in closed-end funds and investment trusts, with approximately $6.6 billion invested in these vehicles. The firm ranks as one of the world’s single largest investors in closed-end funds and has been recognized as “Activist Hedge Fund Manager of the Year” by Institutional Investor in both 2023 and 2024. Additionally, Risk.net named Saba “Hedge Fund of the Year” in 2021 following strong performance during the COVID-19 pandemic.

The firm operates two publicly traded closed-end funds: Saba Capital Income & Opportunities Fund (BRW) and Saba Capital Income & Opportunities Fund II (SABA), both listed on the New York Stock Exchange. Saba LT, a majority-owned subsidiary, provides additional operational support.

2) History

Saba Capital Management, L.P. was founded in August 2009 as a spin-off of one of the largest proprietary trading groups in the industry, “Saba Principal Strategies,” which was originally established by Boaz Weinstein at Deutsche Bank in 1998. The name “Saba” is a Hebrew word meaning “grandfather” and serves as a tribute to Weinstein’s grandfather, a survivor of the Warsaw Ghetto during World War II.

The foundation for Saba’s establishment was laid years earlier when Weinstein negotiated an agreement with Anshu Jain at Deutsche Bank in 2006, which allowed the proprietary trading group to move out in 2009. In preparation for the transition, Weinstein renamed the group “Saba Principal Strategies” while still at Deutsche Bank. When the spin-off occurred in early 2009, Weinstein was able to take all of the intellectual property, including trading systems and analytics that the group had developed during their tenure at Deutsche Bank.

Saba launched its flagship Capital Master Fund in August 2009 with initial assets of $140-160 million, operating from the historic Chrysler Building in Manhattan. Weinstein assembled a team of 15 members from his former Deutsche Bank group to establish the new hedge fund. Deutsche Bank had agreed to the move years in advance and became one of Saba’s main brokers following the transition.

The firm gained significant attention in 2012 when it profited from the JPMorgan Chase trading loss, commonly referred to as the “London Whale” incident. Weinstein had begun buying credit default swaps on the Investment Grade Series 9 10-year Index in November 2011 after noticing pricing anomalies, not knowing at the time that JPMorgan was the counterparty. Saba’s gains from this trade were estimated between $200 million and $300 million, while JPMorgan reportedly lost $6.2 billion.

Between 2012 and 2014, Saba experienced a period of underperformance that led to some investor withdrawals. However, the firm recovered with gains of 3% in 2015 and 22% in 2016, attracting new investors and capital inflows. In 2016, Saba profited substantially from capital structure arbitrage trades in Linn Energy and Chesapeake Energy.

From 2012 to 2017, Saba maintained an office in London, though Brexit may have been a factor in its closure. The firm experienced strong performance during the 2020 stock market crash, with its flagship fund returning 33% and its tail fund returning 99% for the year 2020. This exceptional performance led Risk magazine to name Saba “Hedge Fund of the Year” in 2021 due to its strong showing during the COVID-19 pandemic.

By the end of 2021, Saba had become the fourth-biggest SPAC hedge fund investor with $4.26 billion invested. The firm, along with Lighthouse Investment Partners, had invested in Digital World Acquisition Corp., which they sold in October 2021 after the company announced its merger with Donald Trump’s media venture, realizing significant gains as shares surged 357%.

In June 2023, Saba launched an aggressive legal campaign against 16 closed-end funds over control-share provisions, targeting funds managed by BlackRock, Franklin Resources, Tortoise Capital Advisors, Adams Funds, and FS Investments. This marked the beginning of Weinstein’s vocal criticism of fund governance practices, particularly targeting BlackRock as having some of the worst governance practices in the S&P 500.

In December 2024, Saba launched its most ambitious activist campaign to date, targeting seven UK investment trusts over what it characterized as performances ranging from “underwhelming” to “disastrous.” This campaign represents a significant expansion of Saba’s activism into international markets and demonstrates the firm’s evolution from a credit-focused hedge fund to an active participant in corporate governance initiatives across multiple jurisdictions.

3) Key Executives

Boaz Weinstein is the Founder and Chief Investment Officer of Saba Capital Management, L.P., serving in this role since the firm’s establishment in August 2009. Weinstein founded Saba as a spin-off of Deutsche Bank’s proprietary credit trading group, which he had established and led since 1998. He graduated from the University of Michigan, Ann Arbor, with a BA in Philosophy and achieved the title of National Master in chess at age 16. Prior to founding Saba, Weinstein spent eleven years at Deutsche Bank, serving as Co-Head of Global Credit Trading from 2008, where he oversaw approximately 650 investment professionals and was a member of the Global Markets Executive Committee.

Michael D’Angelo serves as Partner, Chief Operating Officer and General Counsel, joining Saba in November 2015. He also serves as Secretary for both Saba Capital Income & Opportunities Fund (BRW) and Saba Capital Income & Opportunities Fund II (SABA). Prior to joining Saba, D’Angelo was General Counsel and Compliance Manager at Prologue Capital Management, LP from 2012 to 2015, and previously worked as a senior attorney at Schulte Roth & Zabel from 2007 to 2012, focusing on hedge fund and private equity fund formation. He began his career as an analyst at Goldman Sachs & Company and holds a Juris Doctorate from Hofstra University School of Law and a BBA in Finance and Economics from Pace University.

Nitin Sapru serves as Partner & Chief Financial Officer, having joined Saba initially as Controller in 2011 before rejoining as Deputy Chief Financial Officer in 2016 and being promoted to Chief Financial Officer in 2017. He also serves as Vice President for both Saba Capital Income and Opportunities Fund (BRW) and Saba Capital Income & Opportunities Fund II (SABA). Prior to rejoining Saba, Sapru was Chief Operating Officer and Chief Financial Officer at Logen Asset Management LP. His experience includes roles in the Fund Accounting group at Och-Ziff Capital Management Group LLC and the Asset Management Assurance Practice at Ernst & Young LLP. He received an MS in Accountancy from Baruch College and a BS in Finance from Lehigh University, and is a CPA.

Drew Kellerman serves as Partner, President, Head of Business Development & Investor Relations, joining Saba in April 2018. He currently serves as Chairman of the Board of Trustees for both Saba Capital Income and Opportunities Fund (BRW) and Saba Capital Income & Opportunities Fund II (SABA). Before joining Saba, Kellerman was Managing Director and Head of Distribution for the Private Institutional Client group at Alex. Brown Raymond James, and spent over a decade at Deutsche Bank from 2002 to 2014 as Managing Director in Credit Derivatives with leadership positions including U.S. Head of Synthetic CDO Sales and Head of Hedge Fund Credit Sales. He holds a Bachelor of Science in International Relations from Syracuse University.

Paul Kazarian serves as Partner & Portfolio Manager, joining Saba in March 2013. He focuses on the closed-end fund strategy and exchange traded products, including ETF arbitrage. Kazarian serves on the Board of Trustees or Board of Directors of Destra Multi-Alternative Fund (DMA) and ASA Gold and Precious Metals Limited (ASA), and is Principal Executive Officer of both Saba Capital Income & Opportunities Fund (BRW) and Saba Capital Income and Opportunities Fund II (SABA). Prior to Saba, he was Director at RBC Capital Markets in the Global Arbitrage and Trading Group from 2007 to 2013, where he developed and managed the Fixed Income ETF Group. He holds a BA in Political Science from Bates College.

Kieran Goodwin serves as Partner & Portfolio Manager, joining Saba in February 2024 and promoted to Partner in 2025. He focuses on structured and private credit opportunities and oversees Saba LT. Prior to Saba, Goodwin was a portfolio manager and co-founder of Panning Capital Management from 2012-2019, and before that was at King Street Capital from 2004-2010, where he became the first non-founding partner and head of trading. He graduated cum laude from Duke University in 1991 with a BA in Computer Science and began his career as a credit derivative and proprietary trader at Smith Barney, Citigroup, Salomon, Merrill Lynch and UBS.

David Han serves as Chief Compliance Officer as of December 2024, as evidenced by his signature on recent SEC filings. Han previously served in various compliance roles at Saba including Deputy Chief Compliance Officer and Senior Compliance Officer starting in 2023. Prior to joining Saba, he held compliance positions at Hitchwood Capital Management LP from 2018 to 2022 and worked in compliance roles at SHENKMAN CAPITAL MANAGEMENT, INC and Patriarch Partners. He holds a BA in Economics from the University of Michigan and brings extensive legal and compliance experience to the firm.

4) Ownership

Saba Capital Management, L.P. maintains a 100% employee-owned structure, with no external institutional shareholders or private equity backing. This ownership model aligns management incentives directly with firm performance and provides complete operational independence from external capital providers.

The firm’s ownership is structured through Saba Capital Management GP, LLC, which serves as the general partner of Saba Capital Management, L.P. Boaz Weinstein, the firm’s founder, serves as managing member of the general partner and maintains significant control over the organization through this structure. The general partner entity is organized as a Delaware limited liability company, while the main entity operates as a Delaware limited partnership.

Within the partnership structure, key executives hold partner-level equity stakes in the firm. Current partners include Boaz Weinstein as Founder and Chief Investment Officer, Michael D’Angelo as Partner, Chief Operating Officer and General Counsel, Drew Kellerman as Partner, President, Head of Business Development & Investor Relations, Nitin Sapru as Partner & Chief Financial Officer, Paul Kazarian as Partner & Portfolio Manager, and Kieran Goodwin as Partner & Portfolio Manager who was promoted to Partner in 2025.

The firm also operates Saba LT as a majority-owned subsidiary, with Saba serving as the majority owner of this entity. This subsidiary structure provides additional operational support and may house certain activities or investments that require separate legal entity treatment.

Notably, Saba Capital Management maintains significant ownership stakes in its own publicly traded closed-end funds, demonstrating alignment between management and fund shareholders. As of November 2025, Boaz Weinstein beneficially owns 8.08% of Saba Capital Income & Opportunities Fund II (SABA), while Saba Capital Management, L.P. as an entity owns 7.9% of the same fund. Similarly, the firm holds ownership positions in Saba Capital Income & Opportunities Fund (BRW), with combined beneficial ownership by Weinstein and the firm representing over 11% of that fund as of April 2025.

The ownership structure has remained stable since the firm’s founding in 2009, with no reported ownership changes, capital raises from external investors, or management buyouts during the 2023-2025 period. This stability in ownership reflects the firm’s profitable operations and self-sustaining business model, eliminating the need for external capital infusions that could dilute employee ownership or compromise operational independence.

5) Financial Position

Saba Capital Management, L.P. demonstrates strong operational health as a privately held registered investment adviser, with several key financial indicators reflecting robust business performance and growth trajectory. As of August 2025, the firm manages approximately $6 billion in assets under management across its three core strategies, representing substantial growth from $3.8 billion when it became investment adviser to its first public fund in June 2021. The firm’s regulatory assets under management reached $17.01 billion as of March 2025, indicating significant expansion in its total managed assets across all client types and vehicles.

The firm’s operational scale is evidenced by its employee count of 75-79 professionals as of August 2025, representing a 22% growth in headcount over the previous year and demonstrating capacity expansion to support increased business volume. This headcount growth aligns with the firm’s asset growth trajectory and suggests continued business expansion and operational investment.

Saba’s revenue generation capabilities are reflected through its estimated annual revenue of $14.7 million as of 2024, with revenue per employee estimated at $204,300, indicating efficient revenue generation relative to its professional workforce. The firm maintains a lean operational structure while managing substantial assets, suggesting strong operational leverage and cost management discipline.

The firm’s institutional investor base provides stability, with 39 clients including corporate pensions, public pensions, foundations, fund of funds, endowments, and family offices. The client composition includes 28 pooled investment vehicles representing $14.5 billion in assets, demonstrating the firm’s ability to attract and retain substantial institutional capital commitments. Additionally, the firm manages assets for non-United States persons totaling $5.5 billion, indicating international investor confidence and diversified funding sources.

Saba’s financial health is supported by strong fund performance metrics across its publicly traded closed-end funds. The Saba Capital Income & Opportunities Fund generated an 18% total return for the fiscal year ending October 31, 2024, outperforming its benchmark, while maintaining an annual net expense ratio of 1.53%. Similarly, Saba Capital Income & Opportunities Fund II achieved a 19.79% total return over the same period, demonstrating the firm’s ability to generate alpha for investors while maintaining competitive fee structures.

The firm’s operational efficiency is demonstrated through its managed distribution policies, with both public funds maintaining fixed monthly distributions of $0.085 and $0.058 per share respectively, providing predictable income streams for shareholders while maintaining distribution coverage through portfolio performance. These distribution policies reflect disciplined capital allocation and cash flow management capabilities.

Facility expansion indicates continued investment in operational infrastructure, with the firm maintaining its prestigious headquarters location in the historic Chrysler Building in New York and an additional office in London, supporting its global investment mandate and client servicing capabilities. The firm’s technology infrastructure investments include proprietary trading systems and analytics that were developed during the Deutsche Bank period and continue to provide competitive advantages in credit relative value strategies.

The firm’s creditworthiness is supported by its 100% employee-owned structure, eliminating external debt obligations at the entity level and providing complete operational independence. This ownership structure, combined with profitable operations generating sufficient cash flow to support distribution payments and operational investments, indicates strong financial stability without reliance on external capital sources.

6) Market Position

Saba Capital Management, L.P. operates within the highly competitive alternative asset management industry, with particular strength in credit relative value strategies and closed-end fund activism. The firm manages approximately $6 billion in assets under management as of August 2025, positioning it as a mid-sized player within the broader hedge fund universe that includes multi-billion dollar giants like Citadel and Bridgewater Associates. Saba’s regulatory assets under management reached $17.01 billion as of March 2025, reflecting the firm’s expanded mandate across multiple investment vehicles and client relationships.

The firm has established a dominant position within the closed-end fund activism sector, ranking as one of the world’s single largest investors in closed-end funds with approximately $6.6 billion invested in these vehicles. This specialization has generated significant competitive advantages, as evidenced by Saba’s recognition as “Activist Hedge Fund Manager of the Year” by Institutional Investor in both 2023 and 2024. The firm’s activism strategy extends beyond the United States into international markets, with substantial campaigns targeting UK investment trusts where Saba holds stakes of 19% to 29% in seven targeted trusts.

Saba’s competitive differentiation stems from its pioneering role in credit relative value and capital structure arbitrage strategies, leveraging proprietary trading systems and analytics developed during the Deutsche Bank period. The firm’s quantitative capabilities are further enhanced by recent talent acquisitions, including the hiring of quant traders Robert Rappleye and David Buckman from Jane Street, both now serving as partners. This technological infrastructure provides competitive advantages in identifying credit dislocations and executing complex arbitrage strategies across global markets.

The firm’s client base consists predominantly of institutional investors including 39 clients comprising corporate pensions, public pensions, foundations, fund of funds, endowments, and family offices. This institutional focus differentiates Saba from retail-oriented competitors and provides more stable, long-term capital commitments. The firm’s international reach is demonstrated by $5.5 billion in assets managed for non-United States persons, indicating strong global brand recognition and investor confidence.

Saba’s market positioning benefits from its operational scale and efficiency metrics, with estimated annual revenue of $14.7 million and revenue per employee of $204,300 as of 2024. The firm’s employee count of 75-79 professionals represents a 22% growth over the previous year, indicating expansion capacity to support increased business volume. This operational leverage allows Saba to compete effectively against larger competitors while maintaining competitive fee structures.

The firm’s distribution capabilities are evidenced through its public market presence, operating two NYSE-listed closed-end funds: Saba Capital Income & Opportunities Fund (BRW) and Saba Capital Income & Opportunities Fund II (SABA). These vehicles provide additional distribution channels and brand visibility while demonstrating the firm’s ability to manage public investment vehicles under enhanced regulatory oversight and transparency requirements.

Saba’s competitive positioning within the credit markets is strengthened by its specialized focus on tail risk hedging and volatility strategies, with its tail fund generating 99% returns during the 2020 market crash while the flagship fund returned 33%. This performance during stressed market conditions validates the firm’s value proposition of providing downside protection while capturing upside opportunities, differentiating it from traditional long-only equity managers.

The firm’s operational infrastructure includes prestigious office locations in the historic Chrysler Building in New York and London, supporting its global investment mandate and client servicing capabilities. This geographic footprint enables Saba to access both US and European markets while maintaining proximity to key financial centers and institutional investor bases.

Saba’s technology infrastructure investments provide additional competitive advantages, including proprietary screening tools and quantitative models used to identify relative value opportunities across asset classes and capital structures. The firm’s systematic approach to identifying market dislocations, combined with fundamental analysis capabilities, creates barriers to entry for competitors lacking similar technological sophistication and analytical frameworks.

The firm’s brand recognition has been enhanced through high-profile market events, including its profitable position during the 2012 JPMorgan “London Whale” incident where Saba generated estimated gains of $200-300 million. This track record of identifying major market dislocations has contributed to the firm’s reputation as a sophisticated credit trading organization capable of navigating complex market environments and generating alpha during volatile periods.

7) Legal Claims and Actions

Based on the available regulatory and legal databases, no significant legal claims, regulatory enforcement actions, or material litigation involving Saba Capital Management, L.P. or its subsidiaries have been identified through December 2025. The firm’s regulatory record with the Securities and Exchange Commission shows no enforcement proceedings, sanctions, or regulatory violations documented in public filings.

No criminal or civil cases involving the firm’s executives or the entity itself have been found in federal court records or regulatory databases during the 10-year period from 2015 to 2025. Similarly, no workplace litigation, discrimination claims, or employment-related legal proceedings have been identified in available court records or regulatory filings.

The firm’s compliance history with the Commodity Futures Trading Commission, under which it operates as a registered commodity trading advisor, shows no documented enforcement actions or regulatory penalties. As a registered investment adviser with the SEC since 2009, Saba Capital Management has maintained its regulatory status without reported compliance violations or regulatory sanctions.

No ESG-related controversies, environmental violations, or social responsibility-related legal actions have been documented in available legal databases. The firm has not been subject to any reported investigations by state securities regulators or other financial regulatory bodies.

The absence of documented legal or regulatory actions suggests the firm has maintained compliance with applicable securities laws and regulations throughout its operational history. However, this assessment is limited to publicly available regulatory databases and court records, and private settlements or ongoing investigations not yet in the public domain would not be captured in this analysis.

8) Recent Media

Media coverage of Saba Capital Management, L.P. from 2023 through 2025 has been dominated by its escalating shareholder activism, significant talent acquisitions, and strong financial performance in its publicly traded funds. The firm’s aggressive stance on corporate governance in the closed-end fund sector earned it the title of “Activist Hedge Fund Manager of the Year” from Institutional Investor in both 2023 and 2024.

In June 2023, financial media reported that Saba launched a broad legal campaign against 16 closed-end funds, suing them over the use of control-share provisions that Saba claims entrench management and harm shareholders. The lawsuits targeted funds managed by prominent asset managers including BlackRock, Franklin Resources, Tortoise Capital Advisors, Adams Funds, and FS Investments. This legal action was accompanied by public statements from Founder Boaz Weinstein, who characterized BlackRock as having some of the worst governance practices in the S&P 500, drawing further media attention to the campaign.

Saba significantly expanded its activist efforts internationally in December 2024, launching a campaign targeting seven UK-listed investment trusts. Media outlets reported that Saba, which held stakes ranging from 19% to 29% in the trusts, characterized their performance as “underwhelming” to “disastrous” and sought to implement measures to narrow trading discounts and improve shareholder value. This move represented the firm’s most ambitious international activist campaign to date.

The firm’s growth and strategic hiring have also been subjects of media reports. In August 2025, it was announced that Saba had hired Sergej Wertli from Millennium Management, as well as quant traders Robert Rappleye and David Buckman from Jane Street, with all three joining as partners. These hires were reported as a significant bolstering of the firm’s investment talent. The firm also promoted structured credit portfolio manager Kieran Goodwin to partner in 2025, an executive change reflecting the firm’s internal growth.

Positive financial headlines included the performance of Saba’s publicly traded funds. For the fiscal year ending October 31, 2024, the Saba Capital Income & Opportunities Fund (BRW) reported an 18% total return on net asset value, and the Saba Capital Income & Opportunities Fund II (SABA) reported a 19.79% total return on net asset value. There have been no reports of fraud, misconduct, cybersecurity incidents, or other adverse events concerning the firm or its executives in reputable media sources during the 2023-2025 period.

9) Strengths

Recognized Industry Leadership in Activism

Saba Capital Management has achieved distinguished recognition within the alternative investment industry, earning the title of “Activist Hedge Fund Manager of the Year” from Institutional Investor in both 2023 and 2024. This consecutive recognition demonstrates the firm’s exceptional capabilities in shareholder activism and its ability to deliver measurable value for investors through strategic corporate governance initiatives. Additionally, Risk.net named Saba “Hedge Fund of the Year” in 2021 following its outstanding performance during the COVID-19 pandemic, further cementing its reputation as a premier alternative asset manager.

Pioneering Investment Strategies and Market Innovation

The firm operates as a pioneer in credit relative value and capital structure arbitrage strategies, having developed proprietary trading systems and analytics that provide significant competitive advantages. Saba’s innovative approach combines quantitative models with fundamental and technical analysis to generate alpha, utilizing rigorous investment processes that have been refined over more than a decade of market experience. This pioneering position has enabled the firm to identify and capitalize on market dislocations that competitors may overlook, particularly in volatile market conditions where the firm’s strategies are designed to deliver convex returns.

Experienced Leadership Team with Proven Track Record

The firm benefits from exceptional leadership continuity, with senior members having worked together for over a decade at the forefront of hedging tail risk and arbitraging dislocations between bonds, loans, structured credit, and derivatives. Founder and Chief Investment Officer Boaz Weinstein brings extensive experience from his eleven-year tenure at Deutsche Bank, where he achieved Managing Director status at age 27 and oversaw 650 investment professionals as Co-Head of Global Credit Trading. This experienced leadership team has demonstrated consistent ability to navigate complex market environments and deliver superior risk-adjusted returns across multiple market cycles.

Dominant Market Position in Closed-End Fund Activism

Saba has established itself as one of the world’s single largest investors in closed-end funds, with approximately $6.6 billion invested in these vehicles. This dominant position provides the firm with significant influence and scale advantages in pursuing activist strategies to unlock shareholder value. The firm’s specialization in this sector has generated substantial competitive moats, as evidenced by its successful campaigns against major asset managers including BlackRock, Franklin Resources, and other industry leaders.

100% Employee-Owned Structure

The firm’s 100% employee-owned structure creates exceptional alignment between management and investor interests while providing complete operational independence from external capital providers. This ownership model eliminates potential conflicts that could arise from external institutional shareholders or private equity backing, ensuring that all strategic decisions are made solely in the best interests of the firm’s clients and investment strategies. The employee ownership structure also supports long-term decision making and strategic planning without pressure from external stakeholders with potentially different objectives.

Strong Financial Performance and Asset Growth

Saba demonstrates robust operational health with approximately $6 billion in assets under management as of August 2025, representing substantial growth from its founding in 2009. The firm’s flagship fund returned 33% in 2020 while its tail fund generated 99% returns during the same period, demonstrating exceptional performance during market stress. This strong performance track record has attracted significant institutional capital, with the firm’s regulatory assets under management reaching $17.01 billion as of March 2025.

Prestigious Infrastructure and Global Reach

The firm operates from prestigious headquarters in the historic Chrysler Building in New York with additional presence in London, providing access to global markets and proximity to key financial centers. This infrastructure supports the firm’s international investment mandate and enables effective client servicing for its diverse institutional investor base. The geographic footprint enhances the firm’s ability to identify and execute investment opportunities across multiple jurisdictions and time zones.

Sophisticated Technology and Proprietary Systems

Saba maintains advanced technology infrastructure including proprietary screening tools and quantitative models used to identify relative value opportunities across asset classes and capital structures. The firm’s systematic approach to identifying market dislocations, combined with fundamental analysis capabilities, creates significant barriers to entry for competitors lacking similar technological sophistication and analytical frameworks. These proprietary systems were developed during the Deutsche Bank period and continue to provide competitive advantages in credit relative value strategies.

Diversified Institutional Client Base

The firm serves 39 institutional clients including corporate pensions, public pensions, foundations, fund of funds, endowments, and family offices, providing stable long-term capital commitments. This institutional focus differentiates Saba from retail-oriented competitors and creates more predictable revenue streams through management fees. The firm manages $5.5 billion in assets for non-United States persons, demonstrating strong international brand recognition and investor confidence across global markets.

Public Market Presence and Enhanced Transparency

Saba operates two NYSE-listed closed-end funds: Saba Capital Income & Opportunities Fund (BRW) and Saba Capital Income & Opportunities Fund II (SABA), which provide additional distribution channels and demonstrate the firm’s capability to manage public investment vehicles under enhanced regulatory oversight. These public funds have delivered strong performance, with 18% and 19.79% total returns respectively for the fiscal year ending October 31, 2024, while maintaining competitive expense ratios and consistent distribution policies.

10) Potential Risk Areas for Further Diligence

Extensive Standstill Agreement Obligations and Litigation Dependencies

Saba Capital Management, L.P. has entered into multiple comprehensive standstill agreements with major fund managers including BlackRock and Invesco that impose significant operational constraints on the firm’s activist strategies through 2027. These agreements restrict Saba from engaging in proxy solicitations, forming investor groups, making public statements about target funds, or seeking board representation during the effective periods, potentially limiting the firm’s primary revenue-generating activist strategies. The standstill agreements create complex compliance obligations that vary by fund and could result in unintended violations if not carefully managed across the firm’s extensive closed-end fund portfolio.

Supreme Court Legal Uncertainty and Industry-Wide Implications

The firm faces significant legal uncertainty as the lead plaintiff in FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd., pending before the U.S. Supreme Court with oral arguments scheduled for December 10, 2025. This case will determine whether Section 47(b) of the Investment Company Act creates a private right of action, which forms the foundation of Saba’s entire legal strategy for challenging fund governance provisions. An adverse Supreme Court ruling could eliminate Saba’s ability to pursue rescission of allegedly unlawful fund contracts and fundamentally undermine the firm’s closed-end fund activism business model.

Regulatory Scrutiny and Compliance Allegations

Industry sources have raised serious allegations regarding Saba’s compliance with Investment Company Act requirements for its Saba Closed-End Funds ETF, specifically claiming that the firm’s creation basket process deviates from regulatory requirements and may constitute prohibited joint transactions under Section 17(d) of the 1940 Act. These allegations, while disputed by Saba, could expose the firm to SEC enforcement action and raise questions about the firm’s adherence to regulatory requirements across its investment strategies. The firm’s ETF operations represent a significant component of its business model, making any regulatory violations particularly concerning for operational continuity.

Valuation Disputes and Operational Risk

Saba previously faced significant litigation from Public Sector Pension Investment Board (PSP Investments) in 2015 alleging manipulation of asset valuations during a $500 million redemption process, though the matter was ultimately settled in 2017. The dispute centered on allegations that Saba changed its valuation methodology for illiquid McClatchy Company bonds from external pricing sources to a bids-wanted-in-competition (BWIC) process during PSP’s redemption, resulting in materially lower valuations. While settled, this dispute highlights the operational risks associated with valuing illiquid securities and the potential for investor disputes during periods of significant redemptions.

Key Person Dependency and Succession Planning

The firm exhibits substantial dependency on founder and Chief Investment Officer Boaz Weinstein, whose personal reputation and investment philosophy are central to Saba’s brand identity and investor relationships. Weinstein personally serves as beneficial owner of significant stakes in the firm’s public funds and is party to numerous standstill agreements, creating potential operational disruption if he were unavailable. The firm’s current partnership structure, while providing equity incentives to key executives, does not appear to include formal succession planning for Weinstein’s role as primary investment decision-maker and public spokesperson.

Aggressive Activist Strategy Concentration Risk

Saba’s business model is heavily concentrated in closed-end fund activism, with approximately $6.6 billion invested in these vehicles representing a substantial portion of total assets under management. This concentration creates significant business risk if regulatory changes, legal precedents, or market conditions reduce the viability of activist strategies in the closed-end fund sector. The firm’s aggressive tactics have generated industry opposition and regulatory scrutiny, as evidenced by fund managers reportedly raising concerns with the UK Financial Conduct Authority about Saba’s expansion into UK investment trusts.

Complex Multi-Jurisdictional Regulatory Exposure

The firm’s expansion into UK investment trust activism exposes Saba to additional regulatory frameworks and compliance requirements across multiple jurisdictions, including potential oversight by the UK Financial Conduct Authority. The firm’s simultaneous campaigns against seven UK investment trusts have generated industry concerns about corporate governance standards and potential conflicts of interest, particularly given that partner Paul Kazarian has been nominated to serve on multiple trust boards. These multi-jurisdictional operations increase compliance complexity and create potential conflicts between different regulatory regimes.

Operational Infrastructure and Technology Risks

As a credit-focused hedge fund managing complex derivatives strategies and maintaining significant positions across global markets, Saba faces substantial operational and technology risks related to trade settlement, counterparty exposure, and system reliability. The firm’s reliance on proprietary trading systems and analytics developed during the Deutsche Bank period may create technology obsolescence risks if these systems are not continuously updated to meet evolving market standards. Additionally, the firm’s expansion in headcount from approximately 60 to 79 professionals represents significant operational scaling challenges that could impact risk management and operational controls.

Emerging Alternative Asset Management Industry Considerations

The alternative asset management industry faces increasing regulatory scrutiny regarding fee structures, transparency requirements, and investor protection measures that could impact operational flexibility and profitability. Market volatility and changing interest rate environments could affect the relative value opportunities that form the core of Saba’s investment strategies, particularly in credit markets where the firm maintains significant exposure.

Standard Hedge Fund Industry Risk Factors

General industry considerations include potential impacts from broader market volatility, regulatory changes affecting derivative instruments and credit markets, and evolving institutional investor requirements for ESG compliance and operational due diligence that could require additional compliance infrastructure investments.

Sources

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