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Fund managers have warned the City watchdog that US hedge fund Saba Capital’s plans to take control of seven London-listed investment funds will leave shareholders unaware of where their cash is.
Saba, led by Wall Street financier Boaz Weinstein, has proposed replacing the trust’s directors with its own candidates, saying the leaders have “failed shareholders” and made bad decisions.
But some fund managers have written to the Financial Conduct Authority to say the US firm’s strategy lacks detail and could mean investors end up with a stake in a very different portfolio to the one they chose, the Financial Times reported.
James Budden, a director at Baillie Gifford, whose US growth trust is among Saba’s targets, said the firm “intended to approach the FCA”, while Chris Casey, chairman of the CQS Natural Resources Growth and Income trust You also plan to contact the regulator.
Saba has told investors in Herald Investment, valued at £1.25bn, that it will allow them to sell stakes at a price based on the value of their assets rather than the share price.
Shakeup: Saba, led by Boaz Weinstein (pictured), has proposed replacing the trust’s directors with its own nominees, saying leaders have “failed shareholders”
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