Boaz Weinstein's UK Investment Strategy Yields 40% Returns
Translated & summarized from Bizportal by baba
Hedge fund manager Boaz Weinstein has achieved approximately 40% returns in the British market by investing in undervalued investment funds. After initial setbacks, Weinstein has gained influence, securing board seats and driving changes in several funds. His firm, Saba Capital, has invested over £2 billion, creating significant value for shareholders. Weinstein faces his next major challenge with Baillie Gifford US Growth, where he aims to appoint new directors.
The story in 6 lines · by baba
- Boaz Weinstein's strategy in the UK has yielded approximately 40% returns by targeting undervalued investment funds.
- Saba Capital, founded by Weinstein, has invested over £2 billion in about 50 British companies and funds.
- Weinstein has successfully gained control of the boards of Edinburgh Worldwide and Impax Environmental Markets.
- He was recently appointed to the board of SDCL Efficiency Income Trust, which is liquidating its assets.
- Saba Capital is seeking to appoint three directors to the board of Baillie Gifford US Growth on October 23.
- Weinstein's activism has reportedly created over £600 million in value for shareholders in targeted funds.
Hedge fund manager Boaz Weinstein has achieved a notable success in the British market, with his strategy generating approximately 40% returns. This approach focuses on acquiring shares in investment funds that trade at a discount to their net asset value. Weinstein, an American investor of Israeli descent who founded Saba Capital in 2009, has been actively engaging with company boards, advocating for management changes, share buybacks, and structural reforms within these funds.
Initially, Weinstein faced setbacks in shareholder votes, but he has since secured significant victories. His strategy involves purchasing substantial stakes, sometimes nearly 30% of a fund's shares, and then pressuring boards to reduce the discount between the share price and the underlying asset value. This can involve demanding tender offers, share repurchases, or even the liquidation of the fund.
Weinstein's firm, Saba Capital, has invested over £2 billion in approximately 50 London-listed companies and funds. He estimates that his initiatives have created over £600 million in value for shareholders in funds where he has successfully driven changes. This figure represents the estimated benefit to all investors, not just Saba's profits.
After initial losses in proxy fights, including failing to replace directors in seven British funds at the start of 2025, Weinstein persisted. He has since gained control of the boards of Edinburgh Worldwide and Impax Environmental Markets. Agreements have also been reached with other funds, such as Herald Investment Trust, allowing Saba to exit its investment via a tender offer.
Most recently, Weinstein was appointed to the board of SDCL Efficiency Income Trust, with approximately 84% of participating shareholders voting in favor. The fund is in the process of liquidating its assets and returning capital to investors. Saba is its largest shareholder. The next major challenge involves Baillie Gifford US Growth, where Saba holds about 30% of the shares and seeks to appoint three directors on October 23. The fund argues its performance is strong and has appealed to the UK government to review regulations concerning shareholder influence.