Fund managers have raised concerns with the City watchdog about US hedge fund Saba Capital's plan to seize control of seven London-listed investment trusts, warning that shareholders could be left uncertain about the whereabouts of their investments, according to a report by This Is Money.

Saba, led by Wall Street financier Boaz Weinstein, intends to replace the current directors with its own nominees, claiming the current leadership has “failed shareholders” and made poor decisions.

However, several fund managers have reportedly written to the Financial Conduct Authority (FCA), arguing that Saba’s strategy lacks sufficient details and could result in investors holding stakes in portfolios very different from the ones they initially chose.

James Budden, a Director at Baillie Gifford, whose US Growth trust is among the targets, stated that the firm plans to contact the FCA. Chris Casey, chair of the CQS Natural Resources Growth and Income trust, also intends to reach out to the regulator.

Saba has informed investors in the £1.25bn Herald Investment Trust that it will allow them to sell their stakes based on the value of its assets rather than the fluctuating share price.