Investor Funds Ask Top Court to Nix Saba Suit Over Voting Limits

A group of closed-end funds is urging the US Supreme Court to hold that activist investor Saba Capital Master Fund Ltd. lacks the right to sue them to rescind provisions protecting them from takeover.

Only the Securities and Exchange Commission can bring such a suit, they said in their filing Wednesday.

FS Credit Opportunities Corp., two BlackRock entities, and other funds are seeking to reverse a decision of the US Court of Appeals for the Second Circuit allowing Saba, run by hedge fund manager Boaz Weinstein, to sue closed-end funds under the 1940 Investment Company Act. The justices should resolve ...