A bold move is underway in the UK investment trust sector as American hedge fund manager Boaz Weinstein positions himself as a potential saviour for British investors. The founder of New York-based Saba Capital has launched an ambitious campaign targeting seven UK investment trusts, with plans to revolutionise their management approach.
Weinstein’s vision involves merging the acquired trusts and implementing a strategic shift from expensive US technology stocks towards UK-focused investments. “We’re the white knight,” Weinstein declared in a recent interview. “We’re not the American taking assets to the US, we’re coming to help small UK investors.”
The campaign targets trusts currently managed by prestigious firms including Baillie Gifford, Janus Henderson, Manulife, and Herald Investment Management. The total value at stake in this potential transformation amounts to a significant portion of the £266 billion investment trust sector.
Current market conditions have created an opportune moment for such intervention, with UK investment trust shares trading at an average 15.4 per cent discount to their net asset value—approaching levels not seen since the 2008 financial crisis. This backdrop of market pessimism has been exacerbated by numerous companies abandoning their London listings in favour of US markets.
The proposed strategy would see holdings in companies like Tesla and Nvidia sold off in favour of UK investment vehicles. However, this approach has faced criticism from industry veterans, including James Budden of Baillie Gifford, who argues that consolidating trusts would reduce investor choice and market diversity.
Should Weinstein succeed in his endeavour, it would mark one of the most significant changes in the 150-year history of UK investment trusts. The outcome now rests in the hands of shareholders, who must decide whether this American intervention represents a genuine opportunity for revival or an unwelcome disruption to their investment strategies.
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