Investors risk their trusts' boards without voicing concerns
- Boaz Weinstein's Saba Capital has begun acquiring substantial stakes in various UK investment trusts.
- This increase in ownership has led to a notable reduction in the discounts to net asset value for several trusts.
- The pressure to change management is mounting as Weinstein pushes to remove existing directors to align interests with investors.
In recent months, Boaz Weinstein, founder of Saba Capital, has initiated a dramatic change within the investment trust sector in the UK. With stakes ranging between 18.6 percent and 29.2 percent, his hedge fund has targeted several investment trusts, including Herald Investment Trust, Baillie Gifford US Growth Trust, and Keystone Positive Change Investment Trust. These actions have resulted in a significant decrease in the discounts to net asset value (NAV) for these trusts. Weinstein's aggressive strategies and critiques of the current management highlight the tension between activist investors and traditional trust boards, raising questions about governance and accountability in the industry. The situation surrounding these investment trusts showcases how influential figures like Weinstein can disrupt long-standing practices in asset management. As he demands changes to the boards of these seven trusts, his moves provoke a divided response from investors who either support his vision or fear the potential volatility such actions could introduce. By engaging actively in this sector, Weinstein challenges the traditional operating procedures of investment trusts and pushes for greater efficiency and transparency. Weinstein, who is known for comparing himself to a