---
title: "US Hedge Fund Saba Capital Launches Aggressive Campaign Against British Investment Trusts"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2024-12-19T05:31:32+00:00"
modified: "2024-12-19T05:31:32+00:00"
date: 2024-12-19
canonical: "https://stockmark.it/us-hedge-fund-saba-capital-launches-aggressive-campaign-against-british-investment-trusts/"
category: "Financial"
categories: ["Financial", "Investment"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2024-12-19T053112.951.jpg?fit=1200%2C800&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# US Hedge Fund Saba Capital Launches Aggressive Campaign Against British Investment Trusts

**Published:** December 19, 2024
**Author:** Stockmark.IT Website
**Categories:** Financial, Investment
**Featured image:** ![Protestors at a demonstration hold signs advocating for change. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2024-12-19T053112.951.jpg?fit=1200%2C800&quality=89&ssl=1)

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In a bold move that has sent shockwaves through the UK investment trust sector, New York-based hedge fund Saba Capital has initiated a dramatic campaign to overthrow the boards of seven prominent British investment trusts, including several managed by Baillie Gifford and Janus Henderson.

The aggressive strategy, spearheaded by Saba’s founder Boaz Weinstein, targets trusts which have allegedly delivered poor returns and trade at significant discounts to their net asset values. The hedge fund has accumulated substantial stakes ranging from 19% to 29% in each trust, positioning itself as the largest shareholder.

The targeted trusts include Baillie Gifford US Growth Trust, Edinburgh Worldwide, Keystone Positive Change, Henderson Opportunities Trust, European Smaller Companies Trust, CQS Natural Resources Growth & Income, and Herald. These investments have reportedly suffered from three-year average discounts to net asset value between 12% and 14.7%.

Saba Capital, which manages $5.3 billion in assets, demands shareholder meetings by early February to vote on board changes. The hedge fund’s strategy includes plans for tender offers, share buybacks, and potential trust consolidations to achieve scale benefits.

Industry analysts at Winterflood describe this as a “long-feared moment” for board members across the sector. Deutsche Numis suggests that Saba’s significant voting power, combined with typically low retail investor participation, could lead to successful resolutions.

The targeted firms have responded defensively, with Baillie Gifford US Growth Trust dismissing the proposals as “fundamentally without merit.” Market experts highlight potential flaws in Saba’s strategy, noting that the UK closed-end fund market differs significantly from its US counterpart, with higher governance standards and generally superior returns.

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