LONDON – Herald Investment Trust PLC (LSE:HRI) is urging shareholders to vote against resolutions proposed by Saba Capital, a U.S. activist hedge fund, at an upcoming general meeting. The investment trust emphasizes the risk to shareholder investments if Saba were to gain control and alter the fund’s investment mandate.
Herald Investment Trust specializes in early-stage technology stocks, leveraging the closed-end structure to invest with a long-term perspective. This strategy has historically provided shareholders with alpha, indicating manager skill in generating uncorrelated returns. Despite the challenges posed by Saba Capital’s actions, Herald Investment Trust reported solid returns in 2024, with several holdings achieving triple-digit growth. The trust also benefited from a narrowing discount in its share price relative to its net asset value (NAV).
The board of Herald Investment Trust stands firm against the proposed changes by Saba Capital, which they believe could undermine the trust’s successful investment approach and potential future returns for shareholders. The board recommends that shareholders of all sizes reject Saba’s resolutions to preserve the integrity and continuity of the trust’s investment strategy.
This stance is part of an update note from QuotedData, a research firm authorized and regulated by the Financial Conduct Authority. The note, paid for by Herald Investment Trust PLC, is intended for informational purposes and is not an encouragement to deal in the security.
The information in this article is based on a press release statement.
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