FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd. · ¶11

Respondents Saba Capital Master Fund, Ltd., and Saba Capital Management, L. P., whom we will call “Saba,” manage open-end mutual funds. Unlike their closed-end counterparts, open-end funds continually issue new shares to investors. These funds do not trade on the market and their shares are priced daily based on the net-asset value of the underlying holdings. Because capital continually flows into and out of these funds as trading occurs, they are highly liquid. Saba’s investment strategy includes identifying low- performing closed-end funds and purchasing a large enough stake to change the funds’ behavior. Brief for Respondents 17–18. Known as activist investing, this practice allows Saba to alter closed-end funds’ investment strategies to make short-term profit or to convert them into open-end funds. Brief for Petitioners 11; Saba Capital CEF Oppor tunities 1, Ltd. v. Nuveen Floating…

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