Saba Capital demands board changes at Baillie Gifford US Growth Trust

Saba Capital Management, a New York-based hedge fund led by Boaz Weinstein, has issued a requisition notice to the Baillie Gifford US Growth Trust demanding changes to its board of directors. Saba is proposing the appointment of three individuals—Jason Chen, Thomas McGlade, and James Waterlow—to the board, with a vote expected at the upcoming annual general meeting.

This marks Saba’s third attempt to influence the Edinburgh-based investment trust in less than two years. The hedge fund, which holds nearly 30 per cent of the trust, has previously argued that decision-making at the US Growth Trust has caused its market discount to widen relative to the value of its underlying investments. The trust, which has a market capitalization of approximately $916 million, focuses on high-growth US public and private companies.

The board of Baillie Gifford US Growth Trust has advised shareholders to take no action at this time and await further announcements. Saba has a history of targeting investment trusts, having previously succeeded in installing directors at the Edinburgh Worldwide Investment Trust.