Hedge Fund Saba Loses Bid for Control of Scottish Investment Trusts
Investment trusts managed by Baillie Gifford, a renowned Scottish growth investor, have rejected resolutions proposed by Saba Capital Management. These resolutions aimed to replace the trusts' boards with Saba-appointed candidates, potentially leading to a shift in management and investment strategies.
The votes, part of a wider campaign by Saba against London-listed investment trusts, resulted in setbacks for the hedge fund. Shareholders favored Baillie Gifford's existing management teams, recognizing their track record of success, particularly in technology investments.
Despite Saba's initial setbacks, the remaining ballots present opportunities for further engagement with the UK investment trust sector. However, analysts note that the lack of support in the first three votes may curb Saba's appetite for continued involvement.
The UK's investment trust sector has rallied to defend against Saba's efforts, with regulators and investment platforms alerting retail investors to the planned votes. This move underscores the importance of ensuring investors are informed and involved in decision-making processes.