Key facts
- Baillie Gifford US Growth Trust is facing its third ouster attempt by Saba Capital.
- Saba Capital holds a near-30% stake in the trust.
- Saba Capital seeks to install three nominees on the board.
- The trust's board argues its strategy has delivered strong long-term returns.
- Saba Capital declined an offer to exit its stake at 99.75% of net asset value.
- Sessa Capital disclosed a 5% stake and is expected to support Saba.
Baillie Gifford US Growth Trust has narrowly survived a third attempt by activist hedge fund Saba Capital to replace its board. Saba Capital, holding a near-30% stake, sought to install three nominees at the upcoming annual general meeting on October 23.
The trust's board urged shareholders to reject the bid, arguing that Saba's nominees would dismantle the company's successful strategy of investing in high-growth US companies like SpaceX and Anthropic. The board highlighted the trust's 16.7% annualized return since 2018, outperforming the S&P 500.
Saba Capital's nominees are considered not independent, with one being a Saba employee. The board also stated that Saba declined an offer to exit its stake at 99.75% of net asset value, suggesting an interest in control rather than liquidity. Sessa Capital, another hedge fund holding a 5% stake, is expected to support Saba.