LONDON (Reuters) – Saba Capital Management is “betting on complacency” by targeting UK investment trusts and investors should oppose the hedge fund, the CEO of fund manager Janus Henderson, which runs two of the investment trusts, said on Wednesday.
Saba, led by prominent investor Boaz Weinstein, “had come in and decided to bet on you and your clients not voting to take over those funds,” Ali Dibadj told the Janus Henderson’s UK Investment Conference.
“They’re betting on complacency. Please, please, don’t be complacent. Don’t let them take over (the trusts),” Dibadj said.
He described Saba’s tactics as “very aggressive” and said historically it had increased management fees when taking on funds.
Saba said last month it wanted to overhaul the boards of seven trusts over performances it said ranged from “underwhelming” to “disastrous”. On Tuesday Weinstein said critics of his plans were misleading investors who have lost “enormous value”.
Those trusts include the Henderson Opportunities Trust plc and the European Smaller Companies Trust, both of which are managed by Janus Henderson.
The other trusts Saba is targeting are the Baillie Gifford US Growth Trust, CQS Natural Resources Growth & Income, Edinburgh Worldwide Investment Trust, Herald Investment Trust and Keystone Positive Change.
(Reporting by Iain Withers; Editing by Tommy Reggiori Wilkes)
