(Reuters) – U.S. hedge fund Saba Capital Management said on Thursday it would offer shareholders of UK’s Herald Investment Trust a full cash exit at 99% of their net asset value, in a bid to win over its shareholders’ approval for a board overhaul.
Saba, founded and run by star activist investor Boaz Weinstein, said last month it wanted to overhaul the boards of seven British investment trusts over performances it said ranged from “underwhelming” to “disastrous”.
“Saba would support further changes so this cash exit would be overseen by a fully independent Board and would not expect it to occur for at least a year thereafter, ensuring portfolio value is maximized,” the hedge fund said in a statement.
Saba’s plans, which include nominating Weinstein to the board of one fund and one of its lead portfolio managers, Paul Kazarian, to the other six funds’ boards, have faced a lot of pushback.
The other trusts it is targeting include Baillie Gifford US Growth Trust, CQS Natural Resources Growth & Income, Edinburgh Worldwide Investment Trust, Keystone Positive Change, Henderson Opportunities Trust and European Smaller Companies Trust.
(Reporting by Yamini Kalia in Bengaluru; Editing by Rashmi Aich)
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