Fund managers have warned the City Watchdog that plans by US hedge fund Saba Capital to take control of seven London-listed investment funds will leave shareholders in the dark about where their money is.
Saba, led by Wall Street financier Boaz Weinstein, has proposed replacing trust directors with its own nominees, saying its leaders have “let down shareholders” and made bad decisions.
But some fund managers have written to the Financial Conduct Authority to say the US firm’s strategy is not detailed and could result in investors getting a stake in a portfolio that is very different from the one they chose, according to the Financial Times.
James Budden, director at Baillie Gifford, whose US Growth Trust is among Saba’s targets, said the firm “intended to contact the FCA”, while Chris Casey, chairman of the CQS Natural Resources Growth and Income Trust , also intends to contact the supervisor.
Saba has told Herald Investment investors of £1.25 billion that it will sell its shares at a price based on the value of its assets rather than the share price.
Uproar: Saba, led by Boaz Weinstein (pictured), has proposed replacing trust directors with its own nominees, saying leaders are ‘defaulting shareholders’
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