US raider Boaz Weinstein, bane of the UK’s investment trust sector, is to get a taste of his own medicine after another activist investor unveiled plans to install one of its directors on the boards of his funds.
Last month, Connecticut’s Gamco said it would nominate David Schachter, part of its investor relations team, to the board of Weinstein’s Saba Income & Capital Opportunities and the Saba Capital Income & Opportunities Fund.
Gamco said Schachter would ‘meaningfully enhance board independence and expertise’ while ‘improving accountability and enhancing shareholder value’. It noted the stock market value of the two funds was less than what they own in their portfolios, as their share prices have fallen 16 and 10 per cent respectively in a year.
It turns the tables on Weinstein, who has repeatedly cited similar discounts at UK-listed investment trusts in his bid to oust their boards and install his own nominees.
Turning the tables: Boaz Weinstein is to get a taste of his own medicine after another activist investor unveiled plans to install one of its directors on the boards of his funds
Several trusts have called for the City watchdog to put a stop to Saba’s repeated attempts.
On Thursday, analysts at Investec branded Saba’s campaign as ‘fundamentally flawed’ and said the US raider’s performance at its other funds should serve as a ‘cautionary tale’ for investors thinking of backing Weinstein.
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