Saba Capital Seeks Board Control of Baillie Gifford Trust
Saba Capital is attempting to install three nominees on the board of the Baillie Gifford US Growth Trust to force a cash exit for shareholders.
New York-based hedge fund Saba Capital is attempting to install three nominees on the board of the Baillie Gifford US Growth Trust during its annual meeting on October 23. Holding a stake of nearly 30%, the fund proposes that its nominees urge shareholders to accept a 100% cash exit at or near net asset value to provide a liquidity event.
The trust's current board resists the move, claiming it previously offered Saba Capital a similar exit price which the hedge fund declined. The trust has delivered an annualized return of 16.7% since 2018, though it has faced recent volatility tied to AI valuations.
Brokers Investec and Panmure Liberum have warned shareholders against the takeover. Investec argues that Saba offers no credible plan and that shareholders are being asked to grant board control based on a non-binding proposal without a roadmap for future strategy or governance. Panmure Liberum further cautioned that not voting in support of the existing board effectively constitutes a vote for Saba.
