Key Takeaways
- • Saba Capital's CEF Special Opportunities Fund II returned approximately 42% after fees through 30 September 2026, versus gains of 4.6% in 2025 and 16.4% in 2024, according to people familiar with the figures cited by Bloomberg.
- • Returns were driven by restructurings at UK investment trusts, including Herald Investment Trust and a Fundsmith-managed vehicle, where Saba-supported changes let shareholders exit at more favourable valuations.
- • Weinstein is reportedly considering reopening the fund to new investors for the first time in more than two years; Saba declined to comment.
- • Saba told the Sunday Times it holds more than £2bn in exposure, including leverage, across as many as 50 London-listed companies, and manages approximately $6.8bn overall.
- • Saba's latest UK campaign targets Baillie Gifford US Growth Trust, which holds a substantial stake in Anthropic.
Summary
Saba Capital Management has generated a 42% net return from its UK investment trust-focused hedge fund in the first nine months of 2026, following a series of activist campaigns targeting discounted London-listed funds, according to Bloomberg. The Saba Capital CEF Special Opportunities Fund II returned approximately 42% after fees through 30 September, compared with gains of 4.6% in 2025 and 16.4% in 2024, according to people familiar with the figures. A representative for Saba declined to comment.
The gains were driven by restructurings at several UK investment trusts, including technology-focused Herald Investment Trust and a vehicle managed by Terry Smith's Fundsmith. Changes supported or advocated by Saba allowed shareholders to exit their holdings at more favourable valuations. Saba's strategy involves acquiring stakes in trusts trading at substantial discounts to net asset value and pressing for share buybacks, tender offers and structural changes to narrow those discounts. The fund follows a market-neutral approach and managed $244m at the end of 2024 before returning some capital to investors.
The campaign began in December 2024, when Saba sought to replace directors at seven UK investment trusts with its own nominees. Those initial boardroom challenges were unsuccessful, but several targeted funds subsequently introduced changes consistent with Saba's demands. Weinstein recently told the Sunday Times that the firm holds more than £2bn in exposure, including leverage, across as many as 50 London-listed companies. The performance has reportedly prompted him to consider reopening the fund to new investors for the first time in more than two years.
The latest UK campaign targets Baillie Gifford US Growth Trust, where Saba is seeking to appoint new board members. The trust's portfolio includes a substantial holding in Anthropic. Weinstein, a former Deutsche Bank credit trading executive who founded Saba in 2009, has pursued similar strategies in the US closed-end fund market, targeting vehicles managed by BlackRock and other major asset managers. Saba currently manages approximately $6.8bn across its investment strategies.
The gains were driven by restructurings at several UK investment trusts, including technology-focused Herald Investment Trust and a vehicle managed by Terry Smith's Fundsmith. Changes supported or advocated by Saba allowed shareholders to exit their holdings at more favourable valuations. Saba's strategy involves acquiring stakes in trusts trading at substantial discounts to net asset value and pressing for share buybacks, tender offers and structural changes to narrow those discounts. The fund follows a market-neutral approach and managed $244m at the end of 2024 before returning some capital to investors.
The campaign began in December 2024, when Saba sought to replace directors at seven UK investment trusts with its own nominees. Those initial boardroom challenges were unsuccessful, but several targeted funds subsequently introduced changes consistent with Saba's demands. Weinstein recently told the Sunday Times that the firm holds more than £2bn in exposure, including leverage, across as many as 50 London-listed companies. The performance has reportedly prompted him to consider reopening the fund to new investors for the first time in more than two years.
The latest UK campaign targets Baillie Gifford US Growth Trust, where Saba is seeking to appoint new board members. The trust's portfolio includes a substantial holding in Anthropic. Weinstein, a former Deutsche Bank credit trading executive who founded Saba in 2009, has pursued similar strategies in the US closed-end fund market, targeting vehicles managed by BlackRock and other major asset managers. Saba currently manages approximately $6.8bn across its investment strategies.
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