US hedge fund Saba Capital has been fundraising for a targeted $500m from investors for the launch of a fund that aims to take activist positions in UK investment trusts holding listed equity, Investment Week has learned.
The vehicle, which follows what is known as a closed-end fund arbitrage strategy, will take leveraged long positions in around 20 UK investment trusts, with the aim of narrowing their discount to net asset value through activism, according to a person familiar with the matter. The new strategy, which originally targeted 1 September for its launch date, is the second iteration of the firm's CEF Special Opportunities fund, which launched in April this year. Investment Week understands Saba Capital is currently growing a $3bn long exposure in UK investment trusts. According to people fa...
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