MARKET REPORT: Mutual fund bosses must go, hedge fund says
There could be a shake-up in the world of trusts after hedge fund Saba Capital Management called for the dismissal of managers in seven of the companies it invests in.
In a letter to shareholders, Saba, founded by former Deutsche Bank banker Boaz Weinstein, urged them to vote out bosses after poor returns.
The investment funds mentioned are: Baillie Gifford US Growth, CQS Natural Resources Growth & Income, Edinburgh Worldwide Investment, European Smaller Companies, Henderson Opportunities, Herald Investment and Keystone Positive Change Investment.
Saba is the largest investor of all, with stakes between 19 and 29 percent, and is demanding general meetings for each trust, which she says should be scheduled no later than early February.
London benchmarks were higher ahead of interest rate decisions from the US Federal Reserve and the Bank of England. The FTSE 100 closed 0.05 percent, or 3.91 points, higher at 8,199.11, while the FTSE 250 ended up 0.29 percent, or 59.13 points. at 20,601.99.
Melrose was among the big gainers, rising 2.9 percent, or 15.6p, to 553.6p, after Prime Minister Keir Starmer reiterated his pledge to increase defense spending.
Uproar: Saba Capital Management urges shareholders to vote out current bosses after disappointing and in some cases disastrous returns
British Airways and Iberia owner IAG rose again, adding 1.9 percent, or 5.5 cents, to 302.8 cents, after analysts at Jefferies raised their price target for the airline group from 270 to 350 cents.
And Kingfisher rose 0.5 percent, or 1.2 cents, to 253.9 cents as the DIY retailer announced the sale of its Brico Depot business in Romania for £58 million.
Unilever lost 1 percent, or 44 cents, to 4,608 cents after the consumer products giant said it had received a binding offer for its meat and soup brands Unox and Zwan from Zwanenberg Food Group.
And National Grid fell 1.1 per cent, or 10.4p, to 926.2p as the energy distributor published a plan detailing investments of up to £35bn over five years from April 2026.
Transact platform owner IntegraFin was among the big fallers on the FTSE 250, falling 12.7 per cent, or 49.5p, to 340.5p, as caution over rising administrative costs next year wiped out full-year results , which showed a 17 percent improvement in funds led at £64.1 billion.
On AIM, Active Energy rose 218.2 percent, or 0.12p, to 0.18p after trading resumed following a temporary suspension.
Hardide rose 29 percent, or 1.38 cents, to 6.13 cents after the surface coating technology supplier signed a 10-year supply agreement for the coating of cargo door components with a major customer.
And Windar Photonics gained 10.9 percent, or 5.5 cents, at 56 cents, as the technology company said it had won a £2 million order.
Digitalbox was steady at 4.85p when website owner The Daily Mash acquired the online assets of Walford News, which covers TV soap EastEnders.
But Zotefoams fell 5.2 percent, or 17 cents, to 308 cents as the packaging specialist said it was halting investment in a new product after the company failed to find a partner for the project.
Stock Watch – Craft Spirits
Investors poured a dram into Artisanal Spirits after the whiskey specialist said it was on course to hit its £1m profit forecast for the full year 2024, a turnaround from last year’s loss.
The AIM-listed company reported a 5 percent increase in membership to 42,000, with strong growth in Britain.
It expects further profitability in 2025 and 2026, driven by cash flow improvements and efficiency measures, and is investing £500,000 to take full control of its US operations from January.
It rose 2.7 percent, or 1 cent, to 38.5 cents.
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