Saba Capital has suffered further blows in its ongoing effort to shake up Britain’s £269bn investment trust sector, as shareholders in two more trusts rejected the US activist hedge fund firm’s board proposals on Monday, according to a report by Reuters.
Investors in Baillie Gifford US Growth Trust voted against all eight resolutions put forward by Saba to remove several board members, with 66% of votes cast opposing the move. Shareholders in Keystone Positive Change Trust, meanwhile, also dismissed similar proposals, with 72% voting against Saba’s recommendations.
The latest defeats follow last month’s rejection by shareholders in Herald Investment Trust, marking a string of unsuccessful attempts by Saba to push through changes.
Saba Capital, led by hedge fund manager Boaz Weinstein, has been campaigning to overhaul seven UK investment trusts, arguing that their performances have ranged from “underwhelming” to “disastrous.”
Weinstein previously told Reuters that he was prepared for a prolonged battle, outlining plans to improve trust performance by merging underperforming funds, repurchasing shares, and increasing exposure to private assets instead of large listed stocks.
However, several of the targeted trusts have pushed back, publicly criticising Saba’s approach as opportunistic and self-serving.