Baillie Gifford’s U.S. Growth Trust is in a struggle. Saba Capital, an activist investor, wants to change the board. Baillie Gifford has new data to support its case. It shows the Trust beat the S&P 500. This happened in the six months before Nov. 30.
Saba says the Trust has done poorly. Baillie Gifford has a different view. It says the share price went up 40.9%. The net asset value rose by 29.4%. This is after taking out loans.
The S&P 500 only went up 15.3%. This is in British pounds. Baillie Gifford does not want Saba on the board. It says Saba is just trying to take over.
Saba’s Campaign and Goals
Boaz Weinstein runs Saba Capital. He is known for his activism. He wants to change the boards of seven trusts. Boaz Weinstein says they have not done well.
Weinstein says those who don’t like his plan are wrong. He says they misled investors. These investors lost a lot of money.
He is targeting Baillie Gifford and six other trusts. These include:
- Henderson Opportunities Trust
- European Smaller Companies Trust
- CQS Natural Resources Growth & Income
- Edinburgh Worldwide Investment Trust
- Herald Investment Trust
- Keystone Positive Change (KPC)
Since 2013, Baillie Gifford has seen growth. Its share price is up 169.7%. Its net asset value is up 186.1%. But the S&P 500 did better. It went up 190.5% in British pounds.
KPC and the Proxy Advisor
KPC is also in the news. Glass Lewis is a proxy advisor. It is telling shareholders to vote against Saba. The vote will happen on Feb. 3.
Glass Lewis says Saba’s plan is not clear. It thinks Saba just wants power. It does not want to help shareholders.
