Saba Capital Is Dumping BlackRock Funds and Buying Into Germany — Here’s What the $76.8M Activist Is Doing Now

Saba Capital Management, the $6 billion activist hedge fund run by Boaz Weinstein, sold approximately $5.8 million of closed-end fund shares across two tickers in the last two weeks of February — while simultaneously accumulating a position in a third.

The Rotation: What Saba Sold and What It Bought

Between February 19 and March 2, 2026, Saba filed a series of Form 4 disclosures showing a clear portfolio rotation within its closed-end fund book:

Ticker	Fund	Action	Shares	Est. Value
ECAT	BlackRock ESG Capital Allocation Term Trust	Sell	320,091	$4.8M
PDX	PIMCO Dynamic Income Strategy Fund	Sell	73,247	$1.5M
GF	New Germany Fund	Buy	32,964	$402K

This is not random rebalancing. Saba is a 10%+ owner in all three funds, and each move signals a deliberate strategic shift. The firm’s Form 4 history on 13F Insight shows 295 transactions across 15 different closed-end funds, with a career sell total of $76.8M against $65.2M in buys.

Why Saba Is Leaving BlackRock

The ECAT sales mark the tail end of a campaign that already reached its climax. In January 2025, Saba and BlackRock announced a landmark settlement: BlackRock agreed to buy back 50% of shares in its Innovation & Growth Trust (BIGZ) and 40% of Health Sciences Trust (BME) at 99.5% of NAV — totaling roughly $1.6 billion in shareholder liquidity, the largest such tender in closed-end fund history.

In exchange, Saba dropped demands to replace directors and fire BlackRock as manager across dozens of funds. The truce lasts three proxy seasons.

With that fight settled, Saba has been methodically trimming its remaining BlackRock exposure. The ECAT sales over the past two weeks are consistent with a position wind-down in a fund where the activist thesis has already played out.

Why Germany, Why Now

The accumulation of New Germany Fund (GF) shares is the more interesting signal. GF is a small closed-end fund managed by DWS (Deutsche Bank’s asset management arm) that invests in German equities. It has historically traded at a discount to NAV — exactly the setup Saba targets.

Weinstein told attendees at the November 2025 Sohn London conference that his portfolio has shifted from 95% U.S. to 60% U.K. exposure, and that he sees “a storm brewing” in international investment trusts where discounts have widened sharply. The GF purchases suggest this European pivot now extends to continental markets.

The Irony: Saba Itself Is Now an Activist Target

In a twist that Weinstein likely did not anticipate, rival fund manager GAMCO (Gabelli) announced in February 2026 that it would nominate its own director to the boards of two Saba-managed funds — Saba Income & Capital Opportunities (BRW) and Saba Capital Income & Opportunities Fund (SABA) — at their 2026 annual meetings.

Gabelli’s argument: the same one Saba has used against dozens of targets. Both BRW and SABA trade at discounts of 11–13% to NAV. “Schachter’s election would meaningfully enhance board independence,” Gabelli said, using language nearly identical to Saba’s own proxy campaigns.

This counter-attack means Saba is now simultaneously an activist and a target — a dynamic that may constrain Weinstein’s next moves or force him to address his own funds’ discounts first.

Key Facts

Metric	Value
Career Sell Value	$76.8M
Career Buy Value	$65.2M
Total Transactions	295
Shares Held (latest filing)	23,123,608
Last Transaction	March 2, 2026
Funds Traded	15 closed-end funds

For the full transaction history and portfolio breakdown, see Saba Capital’s insider profile on 13F Insight.

What Investors Should Watch

• GF discount trajectory — If Saba crosses 10% ownership in New Germany Fund, expect a 13D filing and potential activist campaign
• Gabelli proxy fight outcome — The BRW/SABA annual meetings will test whether Saba can fend off its own tactics; a loss could force tender offers on its own funds
• ECAT position size — Continued selling suggests Saba is fully exiting post-settlement BlackRock positions; watch for the final zero-share filing
• European closed-end fund discounts — Weinstein’s “storm brewing” thesis means more Form 4 activity on international funds through 2026
• Next 13D filings — Any new 5%+ positions from Saba will signal the next campaign target before proxy season begins