Saba revives attack on Baillie Gifford trust
Notorious activist hedge fund Saba Capital has launched a fresh assault on one of Baillie Gifford’s largest investment trusts, proposing three candidates to be installed on the vehicle’s board. In the latest offensive in a long-running onslaught on London-listed trusts, the Boaz Weinstein-run fund put forward a trio of executives for shareholders to consider for [...]
Hedge fund Saba Capital has initiated a new campaign against one of Baillie Gifford's largest investment trusts, the US Growth Trust (USGT), proposing three candidates for board roles. This is Saba's third attempt to influence the trust in less than two years. Previously, two attempts were dismissed by shareholders concerned about potential changes in investment strategy or the trust structure.
Saba, which holds nearly 30% of USGT, argues that the trust's decision-making has eroded its value relative to its investments. At previous showdowns, Saba's directors have been installed, including Sir James Waterlow, who is also a managing director at the hedge fund. This latest move aims to replace the current board before Saba takes control and shifts the fund's investment policy towards UK closed-ended funds.
Analysts suggest Saba's strategy is to wear down shareholders through a prolonged procedure, potentially allowing it to gain control of the board. The Financial Conduct Authority has proposed changes to address such tactics, but they are yet to be implemented. Both Baillie Gifford and Saba have not commented on the current proposal.
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