Fund managers have warned the City watchdog that plans by US hedge fund Saba Capital to take control of seven London-listed investment trusts will leave shareholders in the dark about where their cash is.
Saba, run by Wall Street financier Boaz Weinstein, has proposed to replace trust directors with its own nominees, saying leaders have ‘failed shareholders’ and made poor decisions.
But some fund managers have written to the Financial Conduct Authority to say the US firm’s strategy lacks detail and could mean investors end up with a stake in a portfolio very different to the one they chose, the Financial Times reported.
James Budden, a director at Baillie Gifford, whose US Growth trust is among those being targeted by Saba, said the firm was ‘intending to contact the FCA’ while Chris Casey, chair of the CQS Natural Resources Growth and Income trust, also plans to get in touch with the regulator.
Saba has told £1.25billion Herald Investment investors that it will let them sell stakes at a price based on the value of its assets rather than the share price.
Shake-up: Saba, run by Boaz Weinstein (pictured), has proposed replace trust directors with its own nominees, saying leaders have ‘failed shareholders’
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