Key Takeaways
- • Saba Capital, a US activist hedge fund, is making its third attempt to replace the board of Baillie Gifford US Growth Trust, with the annual meeting set for 23 October 2026.
- • Saba owns 29.9% of the trust's shares and has nominated three candidates; US hedge fund Sessa Capital owns 7.7% but has not said how it will vote.
- • The trust's board is urging shareholders to vote against Saba's nominees, while Investec and Panmure Liberum analysts back the incumbent board.
- • Fidelity platform holders must cast votes by 20 October 2026, and the trust warns that voting buttons 'For All' or 'Against All' should not be used.
Summary
An American activist investor, Saba Capital, is making its third attempt to change the board of Baillie Gifford US Growth Trust, a London-listed investment trust whose holdings include Anthropic, OpenAI and SpaceX. According to the source article, shareholders will be asked to choose the board at the annual meeting on 23 October, where Saba seeks to appoint three Saba-nominated candidates in place of the existing directors. A successful vote could lead to a change of management and a new strategic direction for the fund.
Saba owns 29.9% of the trust's shares and may be supported by Sessa Capital, another US hedge fund holding 7.7%, which has not stated its voting intentions. The trust's board therefore expects the outcome to depend on participation by private shareholders, who have backed the board in the two previous ballots, both of which Saba lost. Saba previously attempted to change the boards of seven investment trusts in early 2025, and voted its own shares against the board at the 2025 annual meeting.
Trust chair Tom Burnet argued that since launch in March 2018 the annualised NAV total return ranks the trust among the top 10% of UK-listed investment companies and US equity open-ended funds and ETFs globally, and warned that Saba's nominees could pursue proposals benefiting Saba at the expense of other shareholders. Saba countered that over the past five years the trust has underperformed the S&P 500 by 88.4% on a price basis and 79.1% on a NAV basis, and said its nominees would urge a 100% cash exit at or near NAV. Alan Brierley of Investec said Saba 'offers no credible alternative,' while Callum Stokeld of Panmure Liberum warned that a Saba victory would be 'a step into the dark' and stressed the importance of shareholder participation. Sessa Capital did not respond to a request for comment.
Shareholders holding the trust via Fidelity must enable the voting service on fidelity.co.uk and vote by 20 October, with Broadridge providing the voting platform. The board asks shareholders wishing to follow its recommendation to vote against resolutions 1, 2 and 3 and for the others, rather than using the 'For All' or 'Against All' buttons. Georgeson has been appointed to assist shareholders with the process.
Saba owns 29.9% of the trust's shares and may be supported by Sessa Capital, another US hedge fund holding 7.7%, which has not stated its voting intentions. The trust's board therefore expects the outcome to depend on participation by private shareholders, who have backed the board in the two previous ballots, both of which Saba lost. Saba previously attempted to change the boards of seven investment trusts in early 2025, and voted its own shares against the board at the 2025 annual meeting.
Trust chair Tom Burnet argued that since launch in March 2018 the annualised NAV total return ranks the trust among the top 10% of UK-listed investment companies and US equity open-ended funds and ETFs globally, and warned that Saba's nominees could pursue proposals benefiting Saba at the expense of other shareholders. Saba countered that over the past five years the trust has underperformed the S&P 500 by 88.4% on a price basis and 79.1% on a NAV basis, and said its nominees would urge a 100% cash exit at or near NAV. Alan Brierley of Investec said Saba 'offers no credible alternative,' while Callum Stokeld of Panmure Liberum warned that a Saba victory would be 'a step into the dark' and stressed the importance of shareholder participation. Sessa Capital did not respond to a request for comment.
Shareholders holding the trust via Fidelity must enable the voting service on fidelity.co.uk and vote by 20 October, with Broadridge providing the voting platform. The board asks shareholders wishing to follow its recommendation to vote against resolutions 1, 2 and 3 and for the others, rather than using the 'For All' or 'Against All' buttons. Georgeson has been appointed to assist shareholders with the process.
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