Key Takeaways
- • Saba Capital rejected a tender offer from Baillie Gifford US Growth Trust valued at 99.75% of net asset value, despite the hedge fund's previous emphasis on liquidity constraints as a shareholder concern.
- • Saba owns approximately 29% of Baillie Gifford US Growth Trust and is actively pursuing board representation through three nominated candidates: Jason Chen, Thomas McGlade, and James Waterlow.
- • Baillie Gifford is defending against Saba's activist campaign by arguing that appointing Saba-backed directors would compromise board independence and that the rejected tender offer demonstrates management's responsiveness to shareholder interests.
- • Saba's campaign targets persistent discounts between investment trust share prices and net asset values across multiple UK-listed vehicles, with the hedge fund having achieved a major victory in April 2026 by successfully removing the board of Edinburgh Worldwide Investment Trust, another Baillie Gifford-managed trust.
- • The confrontation represents an escalating dispute over governance and value creation at UK investment trusts, with Saba arguing that incumbent directors prioritize the interests of fund manager Baillie Gifford over shareholder value.
Summary
Saba Capital, the New York-based activist hedge fund led by Boaz Weinstein, has rejected a buyout offer from Baillie Gifford US Growth Trust that would have provided an exit opportunity at 99.75% of net asset value through a tender offer available to all shareholders. According to The Times, Saba declined to participate in the offer despite having previously raised liquidity as a material concern for investment trust shareholders—a strategic contradiction that Baillie Gifford intends to highlight in its formal response to Saba's ongoing activist campaign.
Saba currently holds approximately 29% of Baillie Gifford US Growth Trust and is seeking to install three board nominees—Jason Chen, Thomas McGlade, and James Waterlow—as part of a broader governance challenge. The hedge fund has argued that shareholders have been systematically disadvantaged by management practices that prioritize the interests of Baillie Gifford, the investment manager, over investor value. Baillie Gifford's defense strategy centers on two key arguments: that the rejected tender offer demonstrates the trust's commitment to addressing shareholder concerns, and that Saba-backed board appointments would undermine the independence essential to effective governance.
Saba's campaign against Baillie Gifford US Growth Trust is the latest phase of a wider activist initiative targeting UK-listed investment trusts. The hedge fund has accumulated substantial positions across multiple vehicles and has consistently campaigned for board reforms designed to address persistent discounts between share prices and underlying asset values. The strategy achieved a significant milestone in April 2026 when Saba successfully removed the entire board of Edinburgh Worldwide Investment Trust, another Baillie Gifford-managed vehicle, signaling the hedge fund's capacity to mobilize shareholder support and win meaningful governance battles in the UK investment trust sector.
Saba currently holds approximately 29% of Baillie Gifford US Growth Trust and is seeking to install three board nominees—Jason Chen, Thomas McGlade, and James Waterlow—as part of a broader governance challenge. The hedge fund has argued that shareholders have been systematically disadvantaged by management practices that prioritize the interests of Baillie Gifford, the investment manager, over investor value. Baillie Gifford's defense strategy centers on two key arguments: that the rejected tender offer demonstrates the trust's commitment to addressing shareholder concerns, and that Saba-backed board appointments would undermine the independence essential to effective governance.
Saba's campaign against Baillie Gifford US Growth Trust is the latest phase of a wider activist initiative targeting UK-listed investment trusts. The hedge fund has accumulated substantial positions across multiple vehicles and has consistently campaigned for board reforms designed to address persistent discounts between share prices and underlying asset values. The strategy achieved a significant milestone in April 2026 when Saba successfully removed the entire board of Edinburgh Worldwide Investment Trust, another Baillie Gifford-managed vehicle, signaling the hedge fund's capacity to mobilize shareholder support and win meaningful governance battles in the UK investment trust sector.
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