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    Saba's UK investment trust fund returns about 42% through September

    Boaz Weinstein's campaigns at discounted London-listed trusts have paid off this year, and he is said to be weighing reopening the fund to outside money.

    HedgeWeekly Hedge Fund Desk ·

    Saba Capital Management's Saba Capital CEF Special Opportunities Fund II, its vehicle for UK investment trust activism, returned roughly 42% after fees in the nine months to 30 September, Bloomberg reported last week, citing people familiar with the numbers. The market-neutral fund made 4.6% in 2025 and 16.4% in 2024.

    Much of the gain came from shake-ups at Herald Investment Trust and Fundsmith's Smithson Investment Trust that let holders sell out closer to asset value. Herald is moving to Aberdeen Investments and offering to buy back up to 66% of its shares at net asset value less costs, with Saba taking that exit, while Smithson has proposed converting into an open-ended fund. Weinstein is said to be considering letting new investors into the fund for the first time in more than two years.

    Saba stepped up its UK push in December 2024 with bids to overhaul the boards of seven trusts. Those votes were lost, although several of the targets later made changes Saba had sought. Weinstein has told the Sunday Times that Saba has put more than £2bn, including leverage, into as many as 50 London-listed companies. Its current fight is at Baillie Gifford US Growth Trust, where it owns about 29% and has nominated three directors ahead of the trust's annual meeting on 23 October. The UK fund held $244m at the end of 2024 before returning some cash, and Saba manages about $6.8bn overall.

    Why it matters: the numbers suggest closed-end fund activism can make money even when the headline board battles fail, because targets often concede on buybacks, tenders or restructurings. For allocators, a reopening would be a rare window into a strategy that has been shut to new capital for over two years, and this week's Baillie Gifford US Growth vote is the next test of the approach.

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