Saba profitably exits trade that cost JPMorgan more than $2 billion

June 27th, 2012
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Saba Capital Management, the fixed income-focused hedge fund that was founded by Boaz Weinstein, announced it has exited its bet against JPMorgan’s derivatives bet that cost JPMorgan at least $2 billion. Saba was on the winning side of JPMorgan’s risky gamble on an obscure group of indexes that track corporate bonds. Saba’s profit from the index trade is unknown but it is joined by other hedge funds, including BlueMountain Capital Management and BlueCrest Capital Management, that made similar lucrative bets.

JPMorgan is still trying to unwind its own side from the trading loss and will be forced to defend its actions in an investigation opened by the US Securities and Exchange Commission.
For Detailed Investor Profiles on these Investors, click below:
BlueCrest Capital Management
BlueMountain Capital Management
Saba Capital Management LP
Related People: Alan Gerstein; Andrew Feldstein; Boaz Weinstein; Bryce Markus; Derek Smith; George Pan; Jeff Kushner; Jeremy Benkiewicz; Michael Platt; Paul Andiorio; Scott Lessing; Stephen Siderow; William Reeves
Related Entities: BlueCorr; BlueCrest Capital; BlueHorizon; BlueMountain CLO; BlueMountain Correlation Relative; BlueMountain Defensive Credit; BlueMountain Equity Alternatives; BlueMountain Strategic Credit; BlueMountain Timberline; BlueCrest Capital; BlueCrest Special Situations Fund LP; BlueCrest Strategic Ltd; BlueMountain Capital Management; BlueMountain Credit Alternatives Fund; Man Group Holdings; Saba Capital II; Saba Capital Intermediate Fund LTD; Saba Capital Master Fund; Saba Capital Partners LP; Saba trading unit at Deutsche Bank*
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News


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