Boaz Weinstein's primary hedge fund Saba Capital Management LP disclosed a 33% gain in March amid a market severely affected by the coronavirus pandemic. The profits added its year to date gain up to 67%, a letter to its clients said.
Saba’s Tail Fund, which pledged market insurance in the event of markets collapsing, performed even better with a near 100% rise in March which gained 175% for the year.
Weinstein further wrote in the letter that market volatility was not expected to arrive in the form of a pandemic and cautioned investors to anticipate an “extreme market decline”.
Weinstein added that Saba continued to find "extraordinary" new investments for its core strategies including ones such as tail hedging. This was also found in the use of credit default swaps in order to profit from severe market dislocations.
Weinstein added that he will limit inflows into his funds to an accumulation of $1 billion in subscriptions and would then stop taking in cash for the rest of 2020.