Hedge fund manager Boaz Weinstein said on Tuesday that his proposal to unseat managers at seven underperforming UK investment trusts has already made investors millions of pounds through narrower discounts reflected in their market values.
Saba Capital Management, founded and run by Weinstein, said last month it wanted to overhaul the boards over performances it said ranged from "underwhelming" to "disastrous".
"We bought these funds when people wanted to sell them and have caused the price to go up," Weinstein said in a presentation to investors ahead of crucial votes on the future management of the trusts, which hold a range of UK assets for a blend of retail and institutional investors.
Saba's plans, which include nominating Weinstein to the board of one fund and one of its lead portfolio managers, Paul Kazarian, to the other six funds' boards, have faced resistance.
"We want what you want, which is a higher price," the Saba Capital Management founder said in a public presentation.
"This is a box full of rocks, I will open that box, and sell assets that need to be sold," Weinstein said of his plans for the funds.
Saba is targeting the Henderson Opportunities Trust plc, Baillie Gifford US Growth Trust (USAB.L), CQS Natural Resources Growth & Income (CYNL.L), Edinburgh Worldwide Investment Trust (EWI.L), Herald Investment Trust (HRI.L), Keystone Positive Change (KPCK.L) and European Smaller Companies Trust (ESCT.L).
All the managers concerned have urged investors to vote against Saba's proposals.
