An activist investor is hoping to seize control of seven underperforming London-listed investment trusts after urging shareholders on Wednesday to sack their respective boards. Saba Capital published an open letter to shareholders of the seven trusts, calling for them to vote to sack entire boards and replace them with 'new, highly qualified candidates' – including the hedge fund's own executives.
![[Each trust has struggled against a large discount to net asset value]](https://i.dailymail.co.uk/1s/2024/12/18/11/93271503-14205585-image-a-3_1734523102051.jpg)
Saba has built stakes of 19 to 29 per cent in each of the trusts, which have suffered yawning discounts to their net asset value as investors have shunned their shares. The trusts affected are Baillie Gifford US Growth, CQS Natural Resources Growth & Income, Edinburgh Worldwide, European Smaller Companies, Henderson Opportunities, Herald Investment Trust and Keystone Positive Change.
![[Saba has build significant stakes in each of the trusts]](https://i.dailymail.co.uk/1s/2024/12/18/11/93271507-14205585-image-a-4_1734523148061.jpg)
Targeting trusts with big discounts to NAV is a key part of Saba's investment strategy, from which it hopes to build an ETF targeting London-listed investment companies. Boaz Weinstein, founder and chief investment officer at Saba Capital, told the shareholders of each trust that their current investment manager and board's 'inability to mind the gap between each Trust's trading price and NAV has destroyed significant value for shareholders'.
Coup: Saba Capital is eyeing an overhaul of London-listed investment trusts. He noted that each trust has seen its discount to NAV narrow significantly over the last six months, though Weinstein attributes this to the impact of Saba building its stake. 'Without such buyer demand or the prospect of active steps being taken to improve returns to shareholders, there is a risk of the trusts' share prices falling and discounts widening again if we are unsuccessful in our pursuit to reconstitute the Boards of the seven Trust,' he added.
