Hype over Boaz Weinstein’s J.P. Morgan harpooning turns out to be much blubber

By Rob Copeland

Fri Jun 22, 2012



“Whale" of a trade is minnow for vast majority of Saba’s investors; tail risk strategy up big for month, down on year.


   
  Boaz Weinstein of Saba Capital Management
Photo: Bloomberg

He has been compared to Captain Ahab, but Boaz Weinstein is more like a fisherman patiently trawling for cod than a whale hunter with an itchy harpoon hand.

The 38-year-old Weinstein of $5.78 billion credit firm Saba Capital Management made headlines the past month when his publicly-announced short bet against North American investment grade bonds via a credit default swap index ended in humiliation for J.P. Morgan and its trader Bruno Iksil, the so-called whale who lost billions on the other side of Weinstein and other hedge fund speculators.

The New York Times gushed that Boaz Weinstein was the "wunderkind of the hedge fund world." The New York Post labeled him a "hotshot" riding a "genius trade" in a story inspired by Herman Melville’s famous American novel Moby Dick. FORTUNE couldn’t be stopped at a single superlative, calling...

ISSN: 2151-1845 / CDC10004H

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