Baillie Gifford US Growth Trust has warned against the new efforts of Boaz Weinstein, the billionaire hedge fund manager, to gain control of this investment. This investment has asked shareholders to vote negatively on Saba's proposals to replace the board at the upcoming general meeting, claiming that Saba is seeking complete control.
Saba's Share Increase and Criticism of the Board
Saba, having acquired 29% of the shares of this investment, is seeking to appoint three directors to the board. This comes after Saba has been unsuccessful twice in the past 18 months in its attempts to influence the board. Baillie Gifford has stated that shareholders have been harmed due to the actions taken by the current board in favor of this investment and has urged them to consider cash exit options or options close to the net asset value (NAV).
Saba's Efforts and Concerns for the Future
Tom Burnett, chairman of Baillie Gifford US Growth Trust, stated today that Saba is not seeking liquidity and has rejected an opportunity to sell its shares at 99.75% of NAV. He added, "Saba's actions have led the board to conclude that Saba is not seeking liquidity for itself, but rather seeking control of the company at the expense of other shareholders."
Boaz Weinstein has previously criticized this investment for its inability to provide returns for investors. However, Baillie Gifford has acknowledged the significant volatility it has experienced during various periods, considering it an inherent feature of investing in long-term growth companies.
In the year ending May 31, 2026, the share price discount of Baillie Gifford US Growth Trust to NAV decreased from 9.4% to 0.1%, and the total return NAV per share was 31%, surpassing the 29.8% of the S&P 500.
Baillie Gifford has warned that the appointment of Saba's nominees, which includes Sir James Waterloo, CEO of Saba, would mean the end of the company's current strategy, and this change could benefit Saba. This investment has also expressed concern that Saba's efforts to bring about change would jeopardize the independence of the board.
These efforts are part of Saba's broader campaign against listed investments in London, where this hedge fund successfully removed the board of Edinburgh Worldwide Investment Trust, which is also managed by Baillie Gifford. This week, Gore Street Energy Fund narrowly defeated Saba in a vote to end activities.
