Key Takeaways
- • Saba Capital claims its activist campaigns at UK-listed investment trusts have generated over £600m in shareholder gains across 12 trusts where the hedge fund succeeded in forcing board and management changes.
- • Saba has deployed more than £2bn in positions across approximately 50 London-listed companies, with the majority concentrated in investment trusts, and has expanded into UK property with stakes in Workspace and Grainger.
- • The hedge fund's strategy, launched in late 2024, targets trusts trading at persistent discounts to net asset value, with Saba accumulating stakes approaching 30% (below mandatory takeover thresholds) before pushing for board seats and strategic changes.
- • Saba's current focus includes Baillie Gifford US Growth, a £1bn trust holding SpaceX and Stripe stakes, where shareholders will vote this month on three Saba-nominated board appointments.
- • Weinstein acknowledged the campaigns have cost investment managers approximately £26m in fees, which he argues has been redirected to shareholders, while defending Saba's tactics against criticism of exploitative engagement practices.
Summary
Boaz Weinstein, founder of Saba Capital, has publicly defended the hedge fund's activist campaign against UK-listed investment trusts, claiming interventions across the sector have unlocked more than £600m in shareholder value. According to The Times, Weinstein attributed this figure to successful campaigns at 12 investment trusts where Saba forced changes to boards, investment strategies, and management arrangements. Weinstein asserts the benefits extend beyond Saba's own positions to retail shareholders and pension fund holders in the affected trusts.
Saba has positioned itself as a significant investor in the UK listed investment company sector, committing over £2bn across approximately 50 London-listed entities, with investment trusts representing the majority of this capital. The hedge fund has also broadened its approach into UK property, acquiring meaningful stakes in Workspace and Grainger. The activist campaign, initiated in late 2024, specifically targets trusts trading at substantial discounts to their underlying net asset value, with Weinstein advocating for structural and governance reforms to close those valuation gaps.
Recent campaign activity includes Edinburgh Worldwide, where three Saba-backed directors secured board election in April, and the ongoing bid at Baillie Gifford US Growth, a £1bn trust with exposure to SpaceX and Stripe. Shareholders are scheduled to vote this month on Saba's proposals to install three nominees to that trust's board. Other targets including Herald Investment Trust and Smithson Investment Trust have already implemented liquidity measures or restructured following Saba's involvement.
Weinstein rejected allegations that Saba's tactics exploit structural weaknesses in investment trust governance, noting that shareholders retain voting choice and that Saba's electoral success reflects genuine investor engagement. He acknowledged that investment managers at affected trusts have forfeited approximately £26m in fees, characterizing this as a direct transfer of value to shareholders. Despite opposition from some investment trust boards, Weinstein signaled Saba's intention to continue targeting the sector, citing campaign results as validation of the strategy's effectiveness in narrowing discount-to-NAV spreads.
Saba has positioned itself as a significant investor in the UK listed investment company sector, committing over £2bn across approximately 50 London-listed entities, with investment trusts representing the majority of this capital. The hedge fund has also broadened its approach into UK property, acquiring meaningful stakes in Workspace and Grainger. The activist campaign, initiated in late 2024, specifically targets trusts trading at substantial discounts to their underlying net asset value, with Weinstein advocating for structural and governance reforms to close those valuation gaps.
Recent campaign activity includes Edinburgh Worldwide, where three Saba-backed directors secured board election in April, and the ongoing bid at Baillie Gifford US Growth, a £1bn trust with exposure to SpaceX and Stripe. Shareholders are scheduled to vote this month on Saba's proposals to install three nominees to that trust's board. Other targets including Herald Investment Trust and Smithson Investment Trust have already implemented liquidity measures or restructured following Saba's involvement.
Weinstein rejected allegations that Saba's tactics exploit structural weaknesses in investment trust governance, noting that shareholders retain voting choice and that Saba's electoral success reflects genuine investor engagement. He acknowledged that investment managers at affected trusts have forfeited approximately £26m in fees, characterizing this as a direct transfer of value to shareholders. Despite opposition from some investment trust boards, Weinstein signaled Saba's intention to continue targeting the sector, citing campaign results as validation of the strategy's effectiveness in narrowing discount-to-NAV spreads.
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