Janus Henderson’s CEO Ali Dibadj has urged investors to reject Saba Capital Management’s bid to target UK investment trusts, accusing the hedge fund of “betting on complacency,” according to a report by Reuters.
Speaking at the Janus Henderson UK Investment Conference, he stated that Saba, led by well-known investor Boaz Weinstein, was relying on investors and clients not voting to resist their takeover attempts.
“They’re betting on complacency. Please, please, don’t be complacent. Don’t let them take over (the trusts),” Dibadj said, calling Saba’s approach “very aggressive” and noting that the hedge fund had historically raised management fees after assuming control of funds.
Last month, Saba announced its intent to overhaul the boards of seven investment trusts, citing what it described as performance ranging from “underwhelming” to “disastrous.”
Earlier this week, Weinstein countered, accusing critics of misleading investors who had suffered “enormous value” losses.
The trusts targeted by Saba include Henderson Opportunities Trust and the European Smaller Companies Trust, both managed by Janus Henderson.
Other trusts under scrutiny include Baillie Gifford US Growth Trust, CQS Natural Resources Growth & Income, Edinburgh Worldwide Investment Trust, Herald Investment Trust, and Keystone Positive Change.
