Saba Capital has doubled its holding in HarbourVest Global Private Equity (HVPE) to 10%, strengthening its position ahead of next week’s continuation vote.
A stock market filing today showed the US activist hedge fund, which has proved a hostile shareholder in trusts such as Edinburgh Worldwide (EWI) and Impax Environmental Markets (IEM), lifted its HVPE stake from just over 5% on Tuesday.
The position largely comprises of swap derivatives held by Saba funds, including the Dublin-based Saba Capital Investment Trusts ETF launched last year.
HVPE is holding its first continuation vote at the annual general meeting on 15 July in Guernsey. It has faced pressure from Saba and Asset Value Investors, which holds 3.1% of the £2.3bn fund of funds, to do more about its 25% share price discount.
Although Saba orchestrated the removal of the boards of HVPE and EWI, HVPE is expected to pass the vote having increased returns of capital to shareholders through two disposals: the $70.7m (£53.4m sale of some co-investments announced this month and the $300m (£224m) divestment of fund stakes agreed in December. With the proceeds it plans to hold a $400m (£296m) tender offer in the autumn.
Stay a step ahead. Our daily newsletter brings you the latest on investment trusts and active ETFs. Subscribe here.