Herald investment trust (HRI) has moved up to a premium after years of running on a discount following rapid buying activity by its biggest shareholder Saba Capital, which is seeking to take over management of the trust next week.
US hedge fund Saba Capital had a 26% stake in the trust as of last Friday (10 January), but recent Stifel analysis found it has nearly reached the shareholder 29.9% limit. The activist investor launched a takeover campaign against HRI and six other trusts it has a major holding in at the end of last year, predicated on the complaint their boards failed to hold the investment managers accountable for the trusts' wide discounts to their respective net asset values, and therefore let clients down. Proxy voting advisers side with Herald board to vote against Saba Capital Saba's founder...
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