Shareholders in the Herald Investment Trust rejected a campaign by U.S. activist investor Saba Capital to overhaul its board, dealing a blow to founder Boaz Weinstein's broader efforts to reform the UK's £269 billion trust sector. Saba's eight resolutions were turned down by approximately 65% of votes cast, receiving only 35% support. Excluding Saba's own votes in favor, Herald garnered a mere 0.15% of the total votes.
Weinstein's hedge fund, Saba Capital Management, is actively seeking to overhaul seven British investment trusts, criticizing their performances as ranging from "underwhelming" to "disastrous". The trusts have publicly dismissed Saba's campaign as opportunistic and not aligned with broader shareholders' interests. Herald Investment Trust, the primary target with a market capitalization of around £1.2 billion, expressed satisfaction with the outcome and plans to seek advice on next steps.
Herald invests globally in both listed and unlisted telecommunications, multimedia, and technology companies. In a statement, Saba reiterated its commitment to prioritizing shareholders' interests, delivering returns to UK trust investors, and rehabilitating the sector. The statement also urged shareholders of the other six trusts where General Meetings were requisitioned to support Saba's resolutions to pave the way for significant value creation.
(1 pound = $1.236)