Baillie Gifford U.S. Growth Trust has presented data to counter U.S. activist investor Saba Capital’s push to revamp its board. Saba, led by Boaz Weinstein, accuses the trust of persistent underperformance and seeks to install two nominees on the board, a move Baillie Gifford calls “self-serving and destructive.”
To defend its position, Baillie Gifford highlighted a 40.9% share price return and a 29.4% net asset value (NAV) gain in the six months to Nov. 30, outperforming the S&P 500 Index’s 15.3% sterling return during the same period. Over the long term, from its 2013 inception to Nov. 30, the trust’s NAV and share price returned 186.1% and 169.7%, respectively, compared to the S&P 500’s 190.5%.
Saba, targeting seven trusts, including Henderson Opportunities Trust, Edinburgh Worldwide Investment Trust (EWI.L), and Keystone Positive Change (KPCK.L), claims these vehicles have delivered “underwhelming” to “disastrous” results. Weinstein argues shareholders have lost “enormous value” and accuses critics of misleading investors.
Keystone Positive Change (KPC) noted on Tuesday that proxy advisor Glass Lewis recommended shareholders reject Saba’s proposals at a Feb. 3 meeting. Glass Lewis criticized Saba’s campaign for lacking detail and prioritizing influence over meaningful improvements for shareholders.
Baillie Gifford remains firm, dismissing Saba’s intervention as detrimental while emphasizing its recent performance and long-term returns.
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