At Deutsche Bank, Weinstein earned billions using a type of trade called “capital structure arbitrage,” in which he would exploit differences in the price of a company’s various bonds and stock.
The chess “life” master was a star trader for most of his 11 years at the bank. But after his fund suffered a $1 billion loss in 2008, about 18% of the money he managed, he left Deutsche and is now running his own hedge fund, called Saba Capital Management.
Weinstein has reportedly raised more than $250 million for his new fund. “If he made a mistake he’ll learn a ton from it,” William Ackman, the CEO of hedge fund Pershing Square Capital, told The Wall Street Journal earlier this year.
By Scott Cendrowski, Alyssa Abkowitz, Beth Kowitt and Telis Demos
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