Boaz Weinstein, founder of activist hedge fund Saba Capital, has reaffirmed his commitment to the UK investment trust space, vowing to allocate billions more into what he sees as undervalued and mismanaged vehicles, according to a report by Bloomberg.
The report quotes Weinstein as saying in an interview: “I’m here and I’m ready to buy billions more of whatever is for sale and not effective,” following a string of partial victories that saw several trusts offer liquidity options after Saba Capital campaigns.
The New York-based firm, which manages $6.1bn in assets as of May, has built a £3bn ($4bn) book in UK-listed closed-end funds since 2023, rapidly scaling its London operations. Despite losing board votes at seven trusts late last year, five of those vehicles have since initiated steps—including tender offers and strategic reviews—that effectively delivered some of Saba’s core demands, enabling profitable exits.
“UK discounts are wider than in the US, and we’ve had success,” said Weinstein, whose activist strategy has helped push consolidation and governance reform across the sector. “For now, the UK is our favourite market.”
Weinstein’s campaign has catalysed a broader debate about the relevance of persistent NAV discounts in a structurally challenged sector. UK investment trusts have faced mounting pressure from high rates, regulatory scrutiny around cost disclosures, and structural illiquidity, leading to a 49-trust contraction since 2023, according to the Association of Investment Companies (AIC).
While Weinstein remains laser-focused on closing discounts – preferring hedged liquid exposures over opaque private market marks – managers are pushing back on what they view as short-termist pressure.
“Discount to NAV doesn’t actually mean anything,” said Janus Henderson CEO Ali Dibadj, whose firm recently reached a settlement with Saba. “What matters is delivering long-term returns for our clients, not just appeasing discount-focused investors.”
Still, few in the industry deny the growing influence of activist capital. Weinstein said Saba’s closed-end fund strategy has received the largest inflow in the firm’s history, helping to power overall returns in the low- to mid-teens. The hedge fund is now rotating capital out of profitable positions and into new targets.
The veteran derivatives trader—known for his role in the “London Whale” episode over a decade ago – has already spent years building activist positions in US closed-end funds managed by the likes of BlackRock and Invesco. His UK pivot, launched with the reopening of Saba’s London office, reflects a broader search for inefficiencies in global public vehicles.
