Saba Fund Gains 42% in UK Investment Trust Campaign

Boaz Weinstein’s Saba Capital Management generated a 42% net return from its UK investment trust-focused hedge fund in the first nine months of 2026. The strategy targets London-listed funds trading below the value of their assets.

The Saba Capital CEF Special Opportunities Fund II returned about 42% after fees through Sept. 30, according to people familiar with the figures. It gained 4.6% in 2025 and 16.4% in 2024.

The performance has led Weinstein to consider reopening the fund to new investors for the first time in more than two years, the people said. A Saba representative declined to comment.

Saba buys stakes in investment trusts trading at discounts to their net asset values and seeks measures such as share buybacks, tender offers and changes to fund structures. These actions can allow shareholders to sell at prices closer to the value of a trust’s holdings.

Returns were supported by changes at several UK trusts, including technology-focused Herald Investment Trust and a vehicle managed by Terry Smith’s Fundsmith. Measures supported or advocated by Saba allowed shareholders to exit at higher valuations.

Saba’s UK campaign began in December 2024, when the firm sought to replace directors at seven investment trusts with its own nominees. The boardroom challenges failed, but several targeted trusts later introduced changes that matched Saba’s demands.

Weinstein recently disclosed more than £2 billion of exposure, including leverage, across as many as 50 London-listed companies. The fund managed $244 million at the end of 2024 before returning some capital to investors. Saba now manages about $6.8 billion across its investment strategies.

Saba’s latest UK campaign focuses on Baillie Gifford US Growth Trust, where it is seeking new board members. The trust holds a substantial stake in artificial intelligence company Anthropic.

Saba uses a market-neutral strategy designed to limit the effect of broad market movements on returns. Weinstein, a former Deutsche Bank credit trading executive, founded the firm in 2009. He has used similar tactics in the US closed-end fund market, including campaigns involving funds managed by BlackRock and other large asset managers.