(Reuters) – U.S. hedge fund Saba Capital Management said on Thursday it would offer shareholders of Britain’s Herald Investment Trust a full cash exit for 99% of their net asset value, in a bid to win shareholder approval for a management change.
Saba, founded and run by high-profile activist investor Boaz Weinstein, said last month it wanted to review the boards of seven British investment funds over performance that it said ranged from “disappointing” to “disastrous.”
“Saba would support further changes so that cash outflow is overseen by a fully independent board and would not be expected 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 appointing Weinstein to the board of one fund and appointing one of his top portfolio managers, Paul Kazarian, to the boards of the other six funds, have been met with considerable opposition.
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.
