Key Takeaways
- • Saba Capital Management, the New York-based hedge fund led by Boaz Weinstein, failed to take control of the board of the £1.1 billion Baillie Gifford US Growth Trust after shareholders rejected its three nominees at the annual general meeting.
- • Investors holding 52.8% of shares voted opposed Saba's resolutions, with turnout above 82%, which the Association of Investment Companies said was crucial to the outcome.
- • All four Baillie Gifford US Growth directors up for re-election were reappointed, each backed by 52.9% of shares voted.
- • This was the third time Baillie Gifford US Growth shareholders have backed the current board, with Saba holding about 29% of the trust.
- • Saba's campaign has previously ousted the board of Edinburgh Worldwide Investment Trust, a Baillie Gifford-managed fund, on April 30, while the promised tender offer has yet to take place.
Summary
Boaz Weinstein's Saba Capital Management has failed in its attempt to take control of the board of Baillie Gifford US Growth Trust, the £1.1 billion Edinburgh-managed investment trust, according to The Herald. Saba, which owns about 29% of the trust, had tabled resolutions to appoint Jason Chen, James Waterlow and Thomas McGlade as directors at the annual general meeting. Excluding Saba and Sessa Capital IM, also based in New York, 99.2% of votes cast were in line with the board's recommendations. Overall, investors holding 52.8% of shares voted opposed the Saba resolutions, and turnout exceeded 82%, which was crucial to the outcome. The four directors proposed for re-election were reappointed, each backed by 52.9% of shares voted.
Chairman Tom Burnet said shareholders had delivered a "clear and decisive verdict" and argued that repeated votes placed an unnecessary burden on the company. The trust's holdings include SpaceX, Anthropic and Stripe. Burnet said the trust has generated returns in the top decile of UK listed investment companies and of US-focused open-ended funds globally since its 2018 launch. He also welcomed reforms under consideration by the FCA and efforts by the Association of Investment Companies to strengthen shareholder protections.
AIC chief executive Richard Stone said the result was not a foregone conclusion and depended on a major push from the trust, its manager, the industry and the media. Stockbroker Investec ranked Baillie Gifford US Growth third out of 124 UK-based US equity funds from IPO to September 21. Panmure Liberum had warned of a "significant risk" that shareholders would "sleepwalk" into a structural change they did not seek, given the proposer's stake of about 29% to 30%. Baillie Gifford chief executive Tim Campbell earlier told The Herald it would be "incredibly sad" if Saba succeeded.
Saba also ousted the board of Edinburgh Worldwide Investment Trust on April 30 after winning votes there, installing three US-based nominees, and holds about 30% of that trust. Baillie Gifford remains its manager, and the tender offer Saba has sought has not yet taken place. Saba lost all seven initial board votes it contested across UK investment trusts early last year but has continued its campaign at various trusts.
Chairman Tom Burnet said shareholders had delivered a "clear and decisive verdict" and argued that repeated votes placed an unnecessary burden on the company. The trust's holdings include SpaceX, Anthropic and Stripe. Burnet said the trust has generated returns in the top decile of UK listed investment companies and of US-focused open-ended funds globally since its 2018 launch. He also welcomed reforms under consideration by the FCA and efforts by the Association of Investment Companies to strengthen shareholder protections.
AIC chief executive Richard Stone said the result was not a foregone conclusion and depended on a major push from the trust, its manager, the industry and the media. Stockbroker Investec ranked Baillie Gifford US Growth third out of 124 UK-based US equity funds from IPO to September 21. Panmure Liberum had warned of a "significant risk" that shareholders would "sleepwalk" into a structural change they did not seek, given the proposer's stake of about 29% to 30%. Baillie Gifford chief executive Tim Campbell earlier told The Herald it would be "incredibly sad" if Saba succeeded.
Saba also ousted the board of Edinburgh Worldwide Investment Trust on April 30 after winning votes there, installing three US-based nominees, and holds about 30% of that trust. Baillie Gifford remains its manager, and the tender offer Saba has sought has not yet taken place. Saba lost all seven initial board votes it contested across UK investment trusts early last year but has continued its campaign at various trusts.
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