Saba Capital, a US-based activist hedge fund, has taken short positions against a range of notable UK companies, including Bloomsbury Publishing, the publisher of the Harry Potter series, despite previously portraying itself as a champion for the UK market, according to a repot by City AM.
Saba has initiated a 0.95% short position against Bloomsbury, a bet valued at approximately £5.1m. This move contrasts with the hedge fund’s earlier assertions made by CEO Boaz Weinstein, who claimed that Saba was committed to supporting the UK market and positioning itself as a “white knight” for struggling British firms.
“We are the white knight of the UK market. Everyone is a seller. We’re a buyer,” Weinstein stated last month, before Saba’s campaign to remove the boards of seven UK investment trusts was rejected by shareholders. Fewer than 1% of independent shareholders supported Saba’s proposals in those efforts.
Despite this setback, Saba’s actions have taken a different direction. FCA data shows that in the weeks following their defeat in the Herald Investment Trust battle, Saba has opened six short positions against other prominent UK companies.
One notable target is De La Rue, the UK banknote printer, where Saba holds a 0.69% short position, worth about £1.6m. De La Rue is in the midst of a potential takeover bid after receiving a £246m offer from a company group led by private entrepreneur Edi Truell. However, the company has been grappling with significant operational difficulties, including selling off its authentication business to meet pension liabilities.
Other UK firms targeted by Saba include Aptitude Software, Discoverie Group, Luceco, and Next 15 Communications.
Notably, Saba’s positions in these companies are above the 0.5% threshold that requires disclosure to the Financial Conduct Authority (FCA), with Discoverie being the exception, as two other firms have also shorted its stock.
