Boaz Weinstein, an activist investor and head of Saba Capital Management, is facing a challenge from GAMCO Investors, led by Mario Gabelli. GAMCO has targeted Saba’s two closed-end funds (CEFs) — the Saba Capital Income & Opportunities Fund (BRW) and the Saba Capital Income & Opportunities Fund II (SABA) — both of which are trading at significant discounts to their net asset values.
As of now, BRW is trading at a 15.5% discount, while SABA’s discount has widened as well due to recent underperformance, particularly with its exposure to private credit and cryptocurrency. In contrast, GAMCO’s Gabelli Utility Fund (GUT) is trading at a remarkable 77% premium to net asset value, which highlights the broader market dynamics and potential opportunities within the CEF sector.
GAMCO is planning to nominate David Schachter to the boards of BRW and SABA, aiming to apply value-investing strategies that could improve their valuations and close the current discounts, thereby benefiting investors in the long term.
