Baillie Gifford Outperforms S&P 500, Rebuts Saba Capital Activist Demands
Baillie Gifford U.S. Growth Trust has released data showing its superior performance against the S&P 500 Index in sterling terms over the six months ending November 30, 2023.
In response to Saba Capital's allegations of underperformance, Baillie Gifford reported a 40.9% share price return and a 29.4% net asset value return, after deducting borrowings at fair value.
This performance significantly exceeded the S&P 500 Index's 15.3% total return in sterling terms. Baillie Gifford has dismissed Saba's proposals to appoint two nominees on its board as an attempt to seize control of the company.
Saba, led by activist investor Boaz Weinstein, has criticized Baillie Gifford and other trusts for their performance, proposing board overhauls. However, Baillie Gifford maintains its strong track record over its lifetime, with share price and NAV returns of 169.7% and 186.1%, respectively, compared to the S&P 500 Index's 190.5% return after deducting borrowings.
Glass Lewis, an independent proxy advisor, has recommended that shareholders vote against Saba's proposals. Glass Lewis cited a lack of detail and suggested Saba's campaign aims to gain influence rather than provide a clear exit strategy for shareholders.