Retail investors urged to prevent Saba power grab: Hedge fund boss accused of 'betting on complacency'
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A US activist trying to take over seven London-listed investment trusts is ‘betting on complacency’ from thousands of private shareholders to secure victory, a fund manager has said. Saba Capital wants to replace the boards of the trusts with its own nominees.
The hedge fund, which is run by Wall Street financier Boaz Weinstein, has called meetings at seven firms – Herald Investment Trust, Baillie Gifford US Growth, Edinburgh Worldwide, European Smaller Companies, Keystone Positive Change, CQS Natural Resources and Henderson Opportunities – to ask shareholders to vote on its plans.
Fears are mounting in the industry that a low turnout among private investors who own shares in the trusts will hand Saba victory. At an investment conference yesterday, Ali Dibadj, chief executive of Janus Henderson, which manages two of the trusts, said: ‘An inconsequentially small, very aggressive hedge fund has come in and decided to bet on you and your clients not voting, to take over those funds, to take advantage of the management fee.
‘They’re betting on complacency. Please, please don’t be complacent, don’t let them take over.’. Shake-up: Saba Capital, which is run by Wall Street financier Boaz Weinstein (pictured), is aiming to oust the boards of the trusts and replace them with its own nominees.
