TL;DR
Hedge fund manager Boaz Weinstein’s Saba Capital conducted coordinated trades across four closed-end funds over three days, signaling strategic portfolio repositioning.
June 30, 2025
Coordinated Multi-Fund Activity
Saba Capital Management executed a series of strategic trades across four different closed-end funds between June 26-27, 2025. The firm sold positions in three funds while adding to one, suggesting deliberate portfolio rebalancing rather than broad market timing.
The largest transaction involved selling $716,826 worth of BlackRock California Municipal Income Trust (BFZ) shares over two days. Saba sold 35,213 shares at $10.83 on June 26, followed by 31,062 shares at $10.80 on June 27, totaling 66,275 shares while retaining 4.74 million shares.
Selective Municipal Bond Exposure
Contrasting the BFZ sales, Saba purchased $35,242 worth of BNY Mellon Strategic Municipal Bond Fund (DSM) shares on June 26, acquiring 6,350 shares at $5.55.
This brings their DSM holdings to 5.15 million shares, suggesting the firm is rotating within municipal bond strategies rather than exiting the sector entirely.
Natural Resources Reduction
Saba also trimmed natural resources exposure, selling $83,246 worth of GAMCO Natural Resources, Gold & Income Trust (GNT) shares and $9,886 worth of Adams Natural Resources Fund (PEO) shares.
The GNT sale involved 13,277 shares at $6.27, while the PEO transaction moved 459 shares at $21.54.
Strategic Implications
The coordinated timing across multiple funds indicates strategic portfolio optimization rather than reactive selling.
Saba’s movement from higher-priced California municipal bonds (BFZ trading around $10.80) to lower-priced strategic municipals (DSM at $5.55) suggests yield or discount arbitrage positioning.
The natural resources reductions coincide with sector headwinds, while the municipal bond rotation reflects Saba’s continued confidence in closed-end fund strategies—a core expertise of founder Boaz Weinstein.
Bottom Line for Investors
Saba Capital’s simultaneous multi-fund activity over consecutive days represents calculated portfolio rebalancing within their closed-end fund specialization.
The trades suggest sector rotation and valuation-driven positioning rather than broad market concerns, typical of Saba’s sophisticated closed-end fund arbitrage strategies.