Saba ramps up campaign against UK Investment Trusts

Activist hedge fund Saba Capital Management, led by Boaz Weinstein, is intensifying its campaign against underperforming UK investment trusts, pushing for structural reforms, according to Reuters. Weinstein plans to call general meetings for four trusts to propose converting them from closed-ended to open-ended structures.

Speaking at a London School of Economics conference, Weinstein criticized the performance of seven UK investment trusts, calling their results “underwhelming” to “disastrous.” His reform efforts target CQS Natural Resources Growth & Income PLC, European Smaller Companies Trust PLC, Middlefield Canadian Income, and Schroder UK Mid Cap Fund, advocating for greater investor flexibility.

Weinstein’s push has met resistance, with six of the seven trusts rejecting Saba’s initial proposals, which included investor buyouts and board overhauls. The final trust, Edinburgh Worldwide, will vote on Friday. Trust managers have dismissed the campaign as opportunistic, while Richard Stone, CEO of the Association of Investment Companies (AIC), has urged Saba to clarify how the proposed changes would benefit investors.