Saba's Weinstein recently exited credit bet against JPMorgan: sources

NEW YORK Tue Jun 26, 2012 3:13pm EDT

NEW YORK (Reuters) - Saba Capital Management's Boaz Weinstein recently exited a now famous and profitable credit derivative bet against JPMorgan Chase (JPM.N), according to sources familiar with the trade.

Hedge fund manager Weinstein was one of the early proponents of the credit trade, discussing it at a conference in February.

In May, JP Morgan reported a $2 billion trading loss in its chief investment office, due to a bet on the Markit CDX NA IG Series 9 index. Weinstein's Saba, among other funds, were betting against that trade.

JP Morgan Chief Executive Jamie Dimon was forced to defend his bank's policy before U.S. Congress members after disclosing the loss.

(Reporting By Katya Wachtel; Editing by Gary Hill)

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