TL;DR
Saba Capital Management executed a calculated series of trades across three closed-end funds on June 23rd, in what appears to be a deliberate sector rotation strategy.
June 24, 2025
Saba Capital Management and its founder Boaz Weinstein, both identified as ten percent owners, conducted synchronized trading activity totaling over $192,000 across three funds on the same day, signaling a strategic repositioning in the closed-end fund space.
The Coordinated Moves
In a series of transactions that suggest careful planning rather than opportunistic trading, Saba Capital:
Trimmed Natural Resources Exposure:
- Sold 4,497 shares of GAMCO Natural Resources, Gold & Income Trust (NYSE:GNT) for $29,005 at $6.45 per share
- Sold 2,396 shares of Adams Natural Resources Fund (NYSE:PEO) for $52,976 at $22.11 per share
Increased Municipal Bond Holdings:
- Purchased 12,660 shares of Eaton Vance California Municipal Bond Fund (NYSE:EVM) for $111,281 at $8.79 per share
Strategic Implications
The timing and coordination of these trades reveal a sophisticated repositioning strategy. Notably, the EVM purchase occurred near the fund’s 52-week low of $8.49, while securing an attractive 5.66% dividend yield.
EVM has maintained dividend payments for 24 consecutive years, making it a defensive income play. Meanwhile, the natural resources exits come as both GNT and PEO face sector headwinds, with GNT down 2.64% and PEO declining 0.99% in recent trading.
PEO, despite the sale, still offers investors a substantial 9.57% dividend yield and has maintained dividend payments for 54 consecutive years.
Maintaining Control
Despite the sales, Saba Capital retains significant influence across all three funds:
- GNT: 1,712,853 shares remaining
- PEO: 2,884,196 shares remaining
- EVM: 4,513,575 shares (increased position)
As a ten percent owner in each fund, Saba’s positioning allows Weinstein to maintain activist influence while adjusting sector exposure.
Market Context
The coordinated nature of these trades suggests Weinstein is positioning for broader market shifts. The rotation from natural resources into municipal bonds could signal expectations of:
- Continued pressure on commodity-exposed sectors
- Attractive relative value in fixed-income securities
- Defensive positioning amid market uncertainty
For a fund management company known for closed-end fund arbitrage and activist strategies, this synchronized repositioning across multiple holdings represents more than routine portfolio management—it’s a strategic signal about market direction.
The municipal bond focus is particularly noteworthy given current market conditions, with Saba seemingly betting on the stability and income generation of established funds with long dividend histories over the volatility of natural resources exposure.