BlackRock vs. Saba: The Dramatic Power Struggle in Finance

The Battle of the Funds: BlackRock vs. Boaz Weinstein

In a dramatic turn of events, BlackRock Inc. finds itself embroiled in a fierce battle with Wall Street money manager Boaz Weinstein over the management of closed-end funds. Weinstein, the founder of Saba Capital Management, has launched a crusade against what he sees as price distortions in funds managed by BlackRock and other firms, accusing them of cheating investors out of billions of dollars.

The feud has escalated to the point where Weinstein is actively seeking to remove BlackRock as the manager of six funds overseeing $10 billion in assets. In response, BlackRock has sent out a stark warning to its clients, alerting them to the potential disruption that could occur if Saba were to succeed in its bid.

Weinstein, known for his audacious tactics, has a track record of taking on money managers and pressuring them to buy back shares or convert their funds into open-ended vehicles. His recent takeover of the Voya Prime Rate Trust, now known as the Saba Capital Income & Opportunities Fund, has yielded impressive returns, outperforming its benchmark and ranking highly among peer funds.

On the other hand, BlackRock defends its management of closed-end funds, pointing to the strong performance of some of its funds in recent years. However, many of BlackRock’s funds continue to trade at a significant discount to their net asset value, a point of contention for Weinstein.

As the battle heats up, both sides are gearing up for shareholder meetings next month, where the fate of the funds will be decided. BlackRock is actively seeking to rally support from investors, while Weinstein is pushing ahead with his campaign to shake up the boards of BlackRock funds.

The showdown between BlackRock and Boaz Weinstein is shaping up to be one of the most dramatic power struggles in the finance industry, with billions of dollars at stake. As the battle rages on, investors are left wondering who will emerge victorious in this high-stakes clash of titans.