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NEW YORK (Reuters) - A Wall Street hedge fund and a Canadian pension plan have settled a legal dispute over the value of investments, the parties said on Tuesday.
In 2015, Ottawa-based Public Sector Pension Investment Board (PSP) sued Manhattan-based Saba Capital Management LP and its founder, Boaz Weinstein, in New York state court, arguing that the hedge fund manager had marked down some assets after the pension asked for its $500 million investment back earlier in the year. The move, PSP argued, essentially allowed Saba to keep more money than it should have.
Saba and PSP said in a joint statement that they had "resolved this matter as a commercial dispute involving a good faith disagreement over the valuation of two highly illiquid corporate bonds."
The terms of the settlement were confidential, according to a related legal filing.
The court previously dismissed other claims by PSP against Saba and Weinstein, allegations Saba denied.
PSP invests about $117 billion on behalf of the pension plans of the Canadian Armed Forces, the Royal Canadian Mounted Police and other government employees, according to its website.
Saba, known for investing in bonds and loans, took in additional capital over 2016 and now manages about $1.7 billion, according to a person familiar with the situation who requested anonymity because the information is private.
Weinstein started the firm in 2009 after leaving Deutsche Bank AG; by 2012, Saba managed a peak of about $6 billion.
Reporting by Lawrence Delevingne; editing by Grant McCool