Boaz Weinstein runs Saba Capital Management, a $5 billion hedge fund best known for picking fights with closed-end fund managers.
Now he’s picking a bigger one.
He’s tendering to buy shares in Blue Owl Capital Inc’s (NYSE:OWL) private credit BDC at 65 cents on the dollar.
Blue Owl’s retail investors have been trying to cash out of the fund, but redemption requests are piling up faster than the fund can pay.
Weinstein is stepping in with a lowball bid, betting that some investors would rather take 65 cents now than wait years in a queue.
The Pitch
Weinstein’s argument on Bloomberg’s Money Stuff podcast was blunt.
Retail investors were promised they could pull 5% of their money per quarter from these funds. That promise, he said, is “fire insurance that doesn’t work if there’s actually a fire.”
The fire is here. Cliffwater’s fund saw redemption requests spike from 4% to 14% in one quarter.
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