US hedge fund activist firm Saba Capital Management has increased its holding in the BlackRock Smaller Companies trust, according to an update published on the London Stock Exchange (LSE) today (14 April 2026).
The firm now holds 11.6% of the investment trust’s shares, having previously owned 10.1%. Some 2.57% of Saba’s investment is held directly, while a further 9.04% is held through various financial instruments.
See also: EWI: FCA ‘misses the central issue’ on Saba controversy
BlackRock Smaller Companies trust, which has been managed by Roland Arnold since 2018, invests in a combination of AIM-listed stocks and smaller companies on the LSE.
According to data from FE fundinfo, the trust has lost 22.4% over five years, compared with the IT UK Smaller Companies sector’s average return of 11.2%. Over three years, it has returned 5.9% compared with its average peer’s return of 24.7%.
The trust currently yields 3.6% and is trading on a 14.5% discount to net asset value (NAV), AIC data shows.
US firm Saba has been in the spotlight for buying large portions of investment trust shares, then attempting to overturn their management and boards of directors. The latest of which has been the Edinburgh Worldwide investment trust, which yesterday saw its tender offer rejected during a general meeting, as Saba fights to take control of the trust.
Impax Environmental Markets has also battled with Saba over an exit tender offer, with the trust also aiming to prevent shareholders from “becoming trapped in a Saba-controlled company”.
