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Watchdog Faces Fury Over Hedge Fund Raider
24 Mar
Summary
- Investment trust chairman criticizes FCA's inaction.
- Hedge fund Saba Capital attempts board takeovers.
- Trust offers investors exit to avoid hostile takeover.
Jonathan Simpson-Dent, chairman of Edinburgh Worldwide Investment Trust (EWIT), has voiced strong criticism against the Financial Conduct Authority (FCA). He contends that the FCA's lack of decisive action against US hedge fund Saba Capital will render any future rule changes too late for investors.
Saba Capital, helmed by New York financier Boaz Weinstein, has been persistently targeting London-listed investment trusts, seeking to install new directors on their boards. EWIT, facing these repeated attempts, has opted to offer its shareholders an opportunity to redeem their investments, a move seen as a blow to the London market.
Simpson-Dent argues that the FCA is overlooking a crucial issue: current regulations allow minority shareholders, such as Saba, to impose new boards using tactics that may not align with the interests of the majority of shareholders. The FCA's stance, as expressed by official Simon Walls, suggested that trusts calling for intervention risked appearing 'self-interested'.
