LONDON (Reuters) -Saba Capital suffered further setbacks in its campaign to shake up Britain’s 269 billion pound ($332 billion) investment trust sector on Monday, after shareholders in two more trusts rejected the U.S. activist investor’s proposals.
Investors in Baillie Gifford US Growth Trust rejected eight resolutions submitted by Saba to oust several of its board members, with 66% of votes cast voting against them.
Shareholders in Keystone Positive Change trust also rejected similar Saba proposals, with 72% of votes cast against.
Saba Capital was not immediately available for comment.
Shareholders in technology-focused Herald Investment Trust had been the first to reject Saba’s campaign last month.
Hedge fund Saba – run by prominent investor Boaz Weinstein – is waging a campaign to overhaul seven British investment trusts over performances it has said ranged from “underwhelming” to “disastrous”.
Weinstein previously told Reuters he was prepared for the long haul and has vowed to fix performance by merging unpopular trusts, buying back shares, and investing in more private assets rather than large listed stocks.
The trusts have publicly hit back at Saba in recent weeks, dubbing Saba’s campaign opportunistic and self-serving.
($1 = 0.8093 pounds)
(Reporting by Iain Withers;Editing by Tommy Reggiori Wilkes and Alison Williams)
