Baillie Gifford sets new record of action as activist unrest deepens By Reuters

LONDON (Reuters) – Baillie Gifford US Growth Trust, which is fighting US rival Saba Capital’s plans to shake up its board, revealed new data on Tuesday to show it has outperformed the S&P 500 Index on positive terms for months six until Nov. 30.

Responding to Saba’s allegations of persistent underperformance, Baillie Gifford said the company’s share price and asset value returned 40.9% and 29.4% respectively during the period, after the withdrawal loans at fair value.

This compares with a total return of 15.3% for the S&P 500Index in dramatic terms, it said, dismissing Saba’s decision to put two of its nominees on the board as a “selfish and destructive attempt” to take over company management.

Saba, founded and run by Wall Street activist businessman Boaz Weinstein, said last month it wanted to renew the boards of seven trusts over performances it described as ranging from “disappointing” to “in danger”.

Weinstein said the critics of his plans were misguided investors who lost “a lot of value”.

He has targeted Baillie Gifford along with Henderson Opportunities Trust, European Smaller Companies Trust, CQS Natural Resources Growth & Income, Edinburgh Worldwide Investment Trust, Herald Investment Trust and Keystone Positive Change (KPC).

Since its inception in 2013 through November 30, Baillie Gifford’s share price and NAV have returned 169.7% and 186.1% respectively, compared to a total return of 190.5% for the top tier, with after deducting loans at fair value.

KPC also noted on Tuesday that Glass Lewis (JO:), an independent proxy advisor, was recommending that shareholders vote against Saba’s proposals at the February 3 meeting.

Glass Lewis spoke of the “lack of details” and said that Saba’s campaign was “more about gaining influence than giving shareholders the opportunity to exit in a timely manner,” KPC said. .