NEW YORK--(BUSINESS WIRE)--Saba Capital Management, L.P. (together with certain of its affiliates, \u201cSaba\u201d or \u201cwe\u201d) today issued the following statement on the U.S. Supreme Court\u2019s decision in FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd. regarding Section 47(b) of the Investment Company Act of 1940 (the \u201c\u201940 Act\u201d).<\/p>
\nBoaz Weinstein, Founder and Chief Investment Officer of Saba, said:<\/p>
\n\u201cThe Court did not rule that these closed-end fund managers followed the law. The Court ruled only that shareholders cannot sue fund managers for their illegal actions under one particular provision of the \u201940 Act.<\/p>
\nAll today\u2019s opinion changes is that future legal challenges against entrenched fund managers will come in other forms. Saba will pursue every avenue available to defend shareholders\u2019 rights \u2014 including lawsuits under other provisions of the \u201940 Act and under state law.<\/p>
\nThis decision puts the burden squarely on the SEC. Multiple federal and state courts have already ruled that investment managers violated the \u201840 Act by adopting control share provisions and vote-stripping bylaws. The SEC\u2019s own staff reached the same conclusion in its 2010 Boulder Letter. These are protections Congress wrote into law more than 80 years ago \u2014 they are not optional. The evidence of shareholder harm is overwhelming. The SEC has no excuse not to act.\u201d<\/p>
\nAbout Saba<\/b><\/p>
\nSaba Capital Management, L.P. is a global alternative asset management firm that seeks to deliver superior risk-adjusted returns for a diverse group of clients. Founded in 2009 by Boaz Weinstein, Saba is a pioneer of credit relative value strategies and capital structure arbitrage. Saba has offices in New York City and London. Learn more at www.sabacapital.com<\/a>.<\/p>