Saba's Weinstein says investment trust campaigns have unlocked £600m for investors
Saba Capital founder Boaz Weinstein has defended his activist campaign against UK-listed investment trusts, claiming the hedge fund's interventions have generated more than £600m in gains for shareholders, according to a report by The Times. Weinstein said Saba has invested more than £2bn across as many as 50 London-listed companies, with the majority of its positions concentrated in investment…
Boaz Weinstein, founder of Saba Capital, has defended his activist campaigns against UK-listed investment trusts, stating that these efforts have generated over £600 million in gains for shareholders, according to a report by The Times. Saba has invested more than £2 billion across approximately 50 London-listed companies, with a majority of its positions in investment trusts.
The hedge fund has also ventured into the property sector, acquiring stakes in companies like Workspace and Grainger. Launched in late 2024, Saba's campaign targets trusts trading at persistent discounts to the value of their underlying assets. Weinstein pushes for changes to boards, investment strategies, and management arrangements to narrow these discounts.
The latest campaign focuses on Baillie Gifford US Growth, a £1 billion investment trust with holdings including SpaceX and Stripe. Shareholders will vote this month on proposals to appoint three Saba nominees to the trust's board. Weinstein claims the £600 million figure is based on 12 investment trusts where Saba has achieved changes, benefiting not just his investors but also retail shareholders and pensioners.
He dismisses accusations that his approach has harmed targeted companies, pointing to Edinburgh Worldwide, where Saba-backed directors were elected in April, and other trusts that have implemented measures to address discounts. Saba's strategy has also encouraged independent action to narrow discounts in other trusts, potentially increasing shareholder gains.
Weinstein acknowledges the strategy has cost some investment managers about £26 million in fees, but argues this money has been redirected towards investors. The activist has faced opposition from some investment trust boards who criticize his tactics and call out the difficulties in engaging with Weinstein. His strategy involves accumulating stakes around 30%, below the level that would trigger a mandatory takeover offer, before seeking shareholder votes to change boards or management.
Weinstein rejects suggestions that his approach exploits low shareholder participation, arguing that shareholders choose whether to vote and that Saba's success reflects its engagement with them. Despite criticism, Weinstein says Saba plans to continue targeting investment trusts, citing the positive results of its campaigns as proof of the strategy's effectiveness.
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