LONDON (Reuters) – Baillie Gifford US Growth Trust, which is fighting plans by U.S. activist Saba Capital to shake up its board, released new data on Tuesday showing it outperformed the S&P 500 in sterling in the six months to Nov. 30.
In response to Saba’s allegations of consistent poor performance, Baillie Gifford said the company’s share price and net asset value returned 40.9% and 29.4% respectively in the period, after deducting fair value borrowing.
That compared with a total return of 15.3% for the S&P 500 index in pounds, it said, dismissing proposals by Saba to put two of its own candidates on the board as a “self-serving and destructive” attempt to take control of the company.
Saba, which was founded and is run by veteran Wall Street activist investor Boaz Weinstein, said last month it wants to audit the boards of seven foundations because of performance it says ranges from “inadequate” to “disastrous.”
Weinstein said critics of his plans had misled investors who lost “enormous value.”
He targeted Baillie Gifford, as well as Henderson Opportunities Trust, European Smaller Companies Trust, CQS Natural Resources Growth & Income, Edinburgh Worldwide Investment Trust, Herald Investment Trust and Keystone Positive Change (KPC).
From launch in 2013 to 30 November, Baillie Gifford’s share price and NAV returned 169.7% and 186.1% respectively, compared to a total return of 190.5% in sterling terms, net of fair value borrowings.
KPC also noted on Tuesday that Glass Lewis (JO:), the proxy’s independent advisor, recommended that shareholders vote against Saba’s proposals at the February 3 meeting.
Glass Lewis cited a “lack of detail” and said Sab’s campaign was “more about gaining influence than offering shareholders a timely and safe exit,” KPC said.
