Saba Capital has sold its entire 5% stake in Baillie Gifford UK Growth.

The New York headquartered hedge fund disclosed its position last March but did not increase its position until its exit last Wednesday. UK Growth delivered a 26.5% share price total return from when Saba disclosed its stake last year until its exit.

The £211m trust discount narrowed from 10.4% to 9.8%. The return was slightly below the 31.5% average share price total return made by its peers in the UK All Companies sector, trading at a 6% average discount.

Baillie Gifford UK Growth has climbed 69.6% over the past decade, the lowest amongst its peers, against a sector average of 135.2%, reflecting a longer term underperformance by the trust.

Chair Neil Rogan said that “patience is thin” following the appointment of James Smith in June 2026 over concerns of continued underperformance of the trust co-managed by Milena Mileve and Iain McCombie since 2018.

However, Saba is still targeting its counterpart Baillie Gifford US Growth Trust, following a requisition in June as part of an attempt to remove the board for a third time on October 23 and install its own candidates, including a Saba employee.

In the lead up to the vote of the £1.1bn trust - Saba upped its stake to 29.9%, just scraping below the 30% limit before it is required to make a mandatory takeover bid.