Saba urges full cash exit at Baillie Gifford US Growth
Activist Saba Capital, largest shareholder in Baillie Gifford US Growth Trust, has nominated three directors and seeks a 100% cash exit for shareholders at or near NAV.
Saba Capital Management, the trust’s largest shareholder, has nominated Jason Chen, Thomas H. McGlade and Sir James Waterlow for election at Baillie Gifford US Growth Trust’s upcoming annual general meeting and is pressing for a 100% cash exit for shareholders at or near net asset value.
In a filing, Saba said shareholders have suffered persistent underperformance and that the trust has traded at a sustained discount to NAV. The firm calculated that over the past five years the trust’s share price lagged the S&P 500 by 88.4% and underperformed on an NAV basis by 79.1%.
The AGM vote will determine whether the nominees win board seats and can pursue a liquidity process. A full cash exit typically involves selling the trust’s assets and distributing the proceeds to shareholders, or arranging a buyer to pay cash close to NAV.
Saba presented the nomination as part of a wider campaign targeting UK investment trusts and reported nine outcomes in the past two years, including liquidity events and share buybacks.
Baillie Gifford’s board will face the shareholder vote at the AGM, where existing directors and Saba’s nominees will stand for election.
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