Key Takeaways
- • Saba Capital Management, led by Boaz Weinstein, owns about 29% of Baillie Gifford US Growth Trust and has tabled resolutions to appoint Jason Chen, James Waterlow and Thomas McGlade to the board at the trust's AGM.
- • Panmure Liberum warns of a "significant risk" that shareholders who previously backed the board could be "passively pushed into a structural change they did not seek or desire" if Saba's nominees are elected.
- • The trust had total assets of around £1.1bn at September 30, and is managed by Baillie Gifford, which oversees about £200bn in funds under management.
- • Saba previously ousted the board of Edinburgh Worldwide Investment Trust on April 30 after installing its own nominees, and has not yet delivered the promised tender offer there.
- • Baillie Gifford CEO Tim Campbell says the manager has offered a tender at NAV less transaction costs and calls the trust's record an "amazing job" for shareholders, arguing a large turnout is needed to defeat Saba.
Summary
Shareholders of Baillie Gifford US Growth Trust, an Edinburgh-based investment trust with total assets of around £1.1bn at September 30, face a crunch vote at the trust's annual general meeting. US hedge fund manager Boaz Weinstein's Saba Capital Management, which holds about 29% of the trust, has nominated Jason Chen, James Waterlow and Thomas McGlade for board seats, according to The Herald.
Stockbroker Panmure Liberum, a corporate broking client of the trust, has warned in a research note led by analyst Callum Stokeld that there is a "significant risk" shareholders could be passively moved into a structural change they did not seek. The note argues that with no published proposals for a post-vote vehicle, and with previous liquidity events substantially subsidised by the managers having been rejected, dissatisfied shareholders could be left with no exit other than open-market sales. Panmure Liberum urged shareholders to vote regardless of holding size. The trust's holdings include SpaceX, Anthropic and Stripe.
Baillie Gifford chief executive Tim Campbell told The Herald it would be "incredibly sad" if Saba succeeded, and described the trust's performance as an "amazing job" for shareholders. Campbell said Saba's stake raises the hurdle for other shareholders, noting that other US funds were thought to be following Saba's strategy on the register. He said the manager had offered Saba a tender at NAV less transaction costs, and that Saba had not yet delivered the liquidity event it proposed at Edinburgh Worldwide Investment Trust, where Saba ousted the board on April 30 and where a further US fund holding also voted against the board.
Association of Investment Companies chief executive Richard Stone has also highlighted the stake of another US hedge fund and urged shareholders to vote. Investec calculated that the trust ranked third out of 124 UK-based open and closed-ended US equity funds from IPO to September 21. Campbell acknowledged that many holders are retail investors who may not know how to vote, and said the manager is working with platforms to encourage participation. The outcome will depend on turnout from shareholders opposed to Saba.
Stockbroker Panmure Liberum, a corporate broking client of the trust, has warned in a research note led by analyst Callum Stokeld that there is a "significant risk" shareholders could be passively moved into a structural change they did not seek. The note argues that with no published proposals for a post-vote vehicle, and with previous liquidity events substantially subsidised by the managers having been rejected, dissatisfied shareholders could be left with no exit other than open-market sales. Panmure Liberum urged shareholders to vote regardless of holding size. The trust's holdings include SpaceX, Anthropic and Stripe.
Baillie Gifford chief executive Tim Campbell told The Herald it would be "incredibly sad" if Saba succeeded, and described the trust's performance as an "amazing job" for shareholders. Campbell said Saba's stake raises the hurdle for other shareholders, noting that other US funds were thought to be following Saba's strategy on the register. He said the manager had offered Saba a tender at NAV less transaction costs, and that Saba had not yet delivered the liquidity event it proposed at Edinburgh Worldwide Investment Trust, where Saba ousted the board on April 30 and where a further US fund holding also voted against the board.
Association of Investment Companies chief executive Richard Stone has also highlighted the stake of another US hedge fund and urged shareholders to vote. Investec calculated that the trust ranked third out of 124 UK-based open and closed-ended US equity funds from IPO to September 21. Campbell acknowledged that many holders are retail investors who may not know how to vote, and said the manager is working with platforms to encourage participation. The outcome will depend on turnout from shareholders opposed to Saba.
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