Saba Capital increases stake in Herald and Edinburgh Worldwide

investmentweek.co.uk:

The firm has been building up stakes in UK investment trusts in the last 18 months, including European Opportunities, Henderson Opportunities, Schroder UK Mid Cap and Baillie Gifford US Growth.

According to the latest disclosures, the firm has increased its Herald holding from 5.3% on 20 September to 10.11% on 24 October, while its stake in Edinburgh Worldwide is now 11.01%, up from 10.03% on 17 October.

Herald is currently trading at a 14.8% discount to net asset value, while Edinburgh Worldwide trades at a 14.3% discount, according to the Association of Investment Companies. 

Saba Capital eyes $500m for activist UK investment trust fund

The firm has been building up stakes in UK investment trusts in the last 18 months, including European Opportunities, Henderson Opportunities, Schroder UK Mid Cap and Baillie Gifford US Growth.

Last month,Investment Week reported that the firm has been fundraising for a targeted $500m from investors for the launch of a fund that aims to take activist positions in UK investment trusts holding listed equity. 

The vehicle will take positions in around 20 UK investment trusts, with the aim of narrowing their discount through activism, according to a person familiar with the matter. Investment Week understands Saba Capital is currently growing a $3bn exposure in the sector.

In recent weeks, Saba Capital has publicly spoken about concerns over two proposed tender offers by European Opportunities (EOT) ahead of the trust's continuation vote next week. 

Saba Capital calls for European Opportunities to increase size of tender offer

On 23 October, the firm described EOT's conditional tender offer for 25% of its shares as «woefully insufficient», and said it would be voting against continuation