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A US hedge fund that declared war on seven British investment trusts has failed to oust the board of one of its targets. Boaz Weinstein’s Saba Capital is waging a campaign to overhaul the trusts over performances it has said ranged from “underwhelming” to “disastrous”.
The trusts have publicly hit back in recent weeks, dubbing Saba’s campaign opportunistic and not in the interests of broader shareholders. Shareholders of Herald investment trust overwhelmingly voted against a proposal by the New York-based hedge fund to axe the board. More than 65pc of the votes backed the current board.
The trust, the largest being targeted by Saba with a market capitalisation of around £1.2m, said it welcomed the outcome of a vote. Herald chairman Andrew Joy told investors: “Today non-Saba shareholders have almost unanimously rejected Saba’s self-interested proposals.
“The fact that 99.78pc of all votes cast by non-Saba shareholders were voted against Saba’s resolutions and in favour of the existing Board provides a clear, complete and incontrovertible rebuttal of Saba’s attempt to take control of your company and change its strategy against the wishes and interests of its non-Saba shareholders.”.
Saba’s proposals were opposed by Glass Lewis and ISS, two independent proxy advisers who give advice to shareholders on how to vote. A Saba spokesman said: “We appreciate the thoughtful engagement from fellow [Herald] shareholders in recent weeks, which only reinforces the dire state of the UK investment trust industry and need for Saba’s presence in the market...
