Saba Capital, led by Boaz Weinstein, has agreed to a three-year pause in its activist campaign against up to nine London-listed funds following a significant agreement with Herald Investment Trust [1]. Herald announced a tender offer for up to 66% of its issued share capital, allowing Saba—its largest shareholder—and other investors to sell at near net asset value (NAV) or remain invested [1]. This move follows Saba's recent victory in a high-profile battle with Edinburgh Worldwide, where it succeeded in ousting the chair and five board members [1].
As part of the Herald deal, stewardship of the fund will transition to Aberdeen Investments later in the year, with current fund manager and founder Katie Potts and seven colleagues joining Aberdeen [1]. Potts emphasized that Herald's investment strategy, focused on technology and communications sectors, will remain unchanged under Aberdeen's management [1].
Saba has agreed to an irrevocable undertaking to tender its full holding in Herald, which is notable given the trust's consistent trading at a discount to NAV since Saba's initial investment in 2023 [1]. The trust currently trades at a 9.7% discount to NAV of just under £3.3 billion ($4.5 billion), a significant improvement from a 25.2% discount in March 2022 [1].
Additionally, Saba has committed to similar three-year standstill arrangements regarding eight other London-listed Aberdeen investment trusts, with combined assets of approximately $17 billion, should their independent boards opt in [1]. Christian Pittard of Aberdeen Group highlighted the collaborative nature of the agreement, stating it provides stability and a constructive path forward for the trusts involved [1]. Saba noted this marks its sixth successful outcome out of seven original U.K. campaigns, underscoring its influence in the market for London-listed funds [1].
CONCLUSION
The agreement between Saba Capital and Herald Investment Trust marks a significant pause in activist campaigns across several major UK funds, providing stability and a constructive way forward for involved parties. The deal narrows the discount to NAV for Herald and sets a precedent for future engagements between activist investors and investment trusts in the UK market.