New York hedge fund Saba Capital is facing opposition from the investing industry for its proposed takeover of seven UK investment trusts. Saba, the largest investor in these trusts, has called for general meetings to address trading discounts compared to their NAV by replacing management with new appointees, some independent and some connected to Saba. Critics, including current managers, investment banks, and industry bodies, have called Saba’s motives self-serving and misleading. In response, Saba defended its plan, stating that its interests align with shareholders and its track record proves its ability to create long-term value. The ongoing dispute highlights a “war of independence” in the UK investment trust sector. Saba Capital Management focuses on protecting shareholder rights by returning discounted trusts to full NAV, creating long-term value through low fees and better management. Despite maintaining a competitive 1.1% management fee for CEFS, Saba has faced criticism from JPMorgan Cazenove for some of its claims, although it agreed with Saba’s assertion that its involvement in the UK investment trust industry benefits shareholders. JPMorgan also criticized Saba for its intention to block KPC’s cash exit scheme, despite acknowledging KPC’s poor performance.
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Investors can secure their financial future by building a portfolio of carefully selected growth stocks, which are expected to significantly increase their revenue and profits over the next decade. Three Fool.com contributors have identified Shopify (NASDAQ: SHOP), Cava Group (NYSE: CAVA), and Nike (NYSE: NKE) as stocks likely to deliver strong returns in the coming years. These selections reflect a strategic approach to investing, emphasizing the importance of choosing companies with substantial growth potential. Full...
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