JPMorgan Chase has been in an uncomfortable spotlight over the last week, after the release of a scathing Senate report related to its multibillion-dollar trading loss last year.
The New York Times reports that on Thursday, the hedge fund manager on the other side of that bet took an opportunity to reflect.
'That was a fairly easy and obvious trade to do', said Boaz Weinstein, the founder of Saba Capital Management, who was among a group of investors betting against JPMorgan’s trader known as the London Whale. While the trade caused losses of at least $6 billion for JPMorgan, it was enormously profitable for Weinstein.
Speaking to an audience of industry professionals at the Absolute Return Symposium in Manhattan on Thursday, Weinstein recalled how the investment opportunity arose when he noticed anomalies in a particular credit index. He discussed that idea at an industry conference in February last year, before the extent of JPMorgan’s losses had become public.
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