Saba Capital Management, L.P. (together with certain of its affiliates, “Saba” or “we”) today issued the following statement on the U.S. Supreme Court’s decision in FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd. regarding Section 47(b) of the Investment Company Act of 1940 (the “’40 Act”).

Boaz Weinstein, Founder and Chief Investment Officer of Saba, said:

“The 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 ’40 Act.

All today’s 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’ rights — including lawsuits under other provisions of the ’40 Act and under state law.

This decision puts the burden squarely on the SEC. Multiple federal and state courts have already ruled that investment managers violated the ‘40 Act by adopting control share provisions and vote-stripping bylaws. The SEC’s own staff reached the same conclusion in its 2010 Boulder Letter. These are protections Congress wrote into law more than 80 years ago — they are not optional. The evidence of shareholder harm is overwhelming. The SEC has no excuse not to act.”

About Saba

Saba 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.

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