Saba Capital Management, the US-based activist hedge fund led by Boaz Weinstein, has disclosed new positions in two UK-listed investment trusts, as it looks to continue campaign to extract value from closed-end vehicles trading at persistent discounts to NAV, according to a report by CityWire.
The report cites regulatory filings as revealing that Saba has acquired a 5.4% stake in Worldwide Healthcare Trust (WWH) and a 5.7% holding in Utilico Emerging Markets Trust (UEM). The positions, worth approximately £74m in WWH and an undisclosed amount in UEM, mark the latest in a string of strategic investments made by the firm in the UK listed trust sector.
The moves follow a series of high-profile exits and tender wins that have freed up significant liquidity for Saba, enabling the firm to recycle capital into discounted trusts with perceived value-unlocking potential.
Both UEM and WWH currently trade at double-digit discounts to net asset value, making them prime candidates for activist engagement. UEM, a £423m trust focused on infrastructure and utilities in emerging markets, was trading at a 15.6% discount as of last week, while WWH, a £1.4bn trust investing in global biotech and healthcare equities, trades at a narrower but still substantial 11.4% discount.
As is typical of Saba’s strategy, the stakes are held through a mix of direct equity and total return swaps, offering the firm flexibility while building influence without triggering mandatory bid thresholds.
Saba declined to comment on the positions.
