(Reuters) – U.S. hedge fund Saba Capital Management said on Thursday it would offer shareholders of Britain’s Herald Investment Trust an all-cash exit worth 99% of their net asset value, in a bid to win shareholder approval for a board review.
Saba, founded and run by star activist investor Boaz Weinstein, said last month it wanted to audit the boards of seven UK investment trusts for performance ranging from “inadequate” to “catastrophic”.
“Saba would support further changes so that this cash exit would be overseen by a fully independent board and would not be expected to occur for at least a year thereafter, ensuring portfolio value is maximised,” the hedge fund said in a statement.
Saba’s plans, which include appointing Weinstein to the board of one fund and one of his top portfolio managers, Paul Kazarian, to the boards of six other funds have met with a lot of pushback.
Other trusts he is targeting include Baillie Gifford US Growth Trust, CQS Natural Resources Growth & Income, Edinburgh Worldwide Investment Trust, Keystone Positive Change, Henderson Opportunities Trust and European Smaller Companies Trust.
