Baillie Gifford US Growth (USA) is currently facing a battle for control with activist investor Saba Capital, which holds a 30% stake in the trust. The upcoming AGM on October 23 will determine whether the existing board will be re-elected or if three board members proposed by Saba will take their place, one of whom is an employee of Saba Capital.

Saba Capital is pushing for all shareholders to be offered a 100% cash exit at or near the net asset value (NAV) of the trust. However, this may prove challenging as nearly 30% of the trust’s portfolio is invested in private companies. The board has revealed that they previously offered Saba a cash exit at approximately “99.75% of NAV”, which was rejected by the activist investor.

This isn’t the first time Saba Capital has attempted to take control of the trust. In February 2025, they made a bid to replace the board, but the majority of shareholders rejected the proposal. Despite this, Saba’s presence on the register has caused concerns, leading to a close vote on remuneration and board re-election at the previous AGM in October.

Saba Capital’s main issue with the trust revolves around performance, initially focusing on a three-year timeframe and more recently shifting to a five-year evaluation, possibly due to improved short-term performance. The ongoing battle for control highlights the challenges faced by investment trusts when faced with activist investors.

The trust’s future direction will be determined by the outcome of the AGM, where shareholders will have to decide on the best course of action for Baillie Gifford US Growth (USA) amidst the pressure from Saba Capital.