Saba Capital wages war on underperforming British investment trusts

“Have you no shame?” cried Boaz Weinstein during a presentation to investors on January 14th. The boss of Saba Capital, an American hedge fund, was railing at fund managers in Britain’s venerable investment-trust industry. Mr Weinstein has picked seven trusts, overseeing £4bn ($5bn), whose performance he deems so abysmal that both boards and managers must be fired. Saba has bought stakes in each and sought votes to oust their boards. If successful, it will appoint new directors and seek to manage the trusts itself. At the first such poll, held on January 22nd, shareholders rejected Mr Weinstein’s overtures. Six more chances remain.