Masters in Business At the Money Special: Activist Investing for NAV
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Mar 26, 2025 
Boaz Weinstein, founder of Saba Capital Management, dives into the world of activist investing, focusing on how funds can reclaim their fair value when trading below NAV. He shares strategies for identifying undervalued closed-end funds and engaging with management for greater shareholder returns. The discussion touches on the challenges posed by entrenched management and the intricacies of navigating investment trusts amid economic shifts. Weinstein also highlights the advantages of closed-end fund ETFs and insights on leveraging mispriced assets.
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Closed-End Fund Opportunities
- Closed-end funds (CEFs) are a retail product, often holding public securities.
- Their net asset value (NAV) is easily calculated, but their trading price can differ significantly, creating potential opportunities.
Activist Investing in CEFs
- Buy CEFs at a significant discount to NAV, target a return to full value.
- Actively engage with management to unlock value, pushing for actions like open-ending the fund.
Saba's Growth in CEFs
- Boaz Weinstein increased his CEF investments from $2B to $7B.
- Institutional investors, seeking alpha, provided significant capital after seeing Saba's success.