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Bloomberg – Boaz Weinstein, the bond trader who lost more than $1 billion last year at Deutsche Bank AG, has raised about $160 million since the end of April for his new hedge fund, according to two people familiar with the matter.
Saba Capital Management LP, based in New York, plans to start trading in August, said a third person with knowledge of the firm. The people asked not to be identified because the information is private.
Saba, Hebrew for grandfather, was the name of the credit unit Weinstein started at Frankfurt-based Deutsche Bank in 2001. Weinstein, 35, lost money in 2008 after betting on bonds of companies such as Ford Motor Co. and hedging some of those wagers with credit-default swaps, contracts to protect against or speculate on default, people familiar with the matter said in January when the plans to start his own fund were made public.
Bloomberg – Greenlight Capital Inc., the hedge- fund firm run by David Einhorn, added to its holdings of Ford Motor Co. debt in the first quarter and invested in EMC Corp., Harman International Industries Inc. and Pfizer Inc.
The hedge fund bought Ford’s high-yield, high-risk bank loans at an average price of 37 cents on the dollar starting in the fourth quarter of 2008, according to a May 1 letter the New York-based Greenlight sent to investors. The debt rose to 45 cents on the dollar when the first quarter ended, said the letter, a copy of which was obtained by Bloomberg News.
Traverse City Record Eagle – General Motors and Chrysler, which have received $17.4 billion in federal aid and face upcoming deadlines to restructure their companies, will designate the auto parts suppliers that need the financing, giving them a large role in determining which suppliers will survive. Ford Motor Co., which has not sought the government aid, has said it does not intend to use the program.
The White House sent a team of 15 people to Detroit on Wednesday to work with GM over the next two weeks to accelerate the restructuring process, an administration official said.
