Unlocking Value

On 14 May 2024, CNBC interviewed Boaz Weinstein, the Chief Investment Officer of Saba Capital.

Saba Capital manages a US$ 6 billion portfolio that invests in over 200 closed-end funds (CEFs). It is currently the most prolific CEF activist investor in the world. It has recently scored a major victory against BlackRock CEFs, which traded at a “staggering” 11.8% average discount to NAV.

To unlock value of CEFs, Saba Capital has pushed for share buyback tender offers, nominated new board members, sued managers (and won), and even taken over entire CEFs.

Mr. Weinstein will be shocked to learn that, here in Hong Kong, we have a CEF (with high quality assets and a venerable manager) trading at over 50% discount to NAV: China Merchants China Direct Investments (133 HK).

Mr. Weinstein told CNBC:

[These CEFs] trade at deep discounts to their objective value, and that discount can be corrected with the press of a button. And that’s what we are here to do.

[Poor] performance is one thing, but the performance is exacerbated by this discount, because a dollar of stuff… is trading freely at 85 cents.

[When] the manager goes and buys back those [CEF] shares, they tender for shares at net asset value… and often that gets rid of the discount.

2024 年 5 月 14 日，CNBC采访了 Saba Capital 首席投资官 Boaz Weinstein。

Saba Capital 管理 60 亿美元的投资组合，投资于 200 多个封闭式基金 。 它是現時世界上最積極的封闭式基金激进投资者。 它最近在BlackRock (贝莱德) 封闭式基金的抗爭取得了重大胜利，贝莱德封闭式基金的股价较资产净值平均折价 11.8%。

Saba Capital 推动了股票回购、提名新董事会成员、起诉基金管理人（并获胜），甚至接管了整个封闭式基金。

Weinstein会惊讶地发现，在香港，我们有一个有优质资产和名牌经理人的封闭式基金，其股价居然比资产净值折价超过 50%：招商局中国基金（133 HK）。

Weinstein說：

[这些 封闭式基金] 的股价与其目标价值相比有很大折扣，并且只需按一下按钮即可纠正。 这就是我们要做的事情。

[糟糕的]表現是一回事，但这种折扣加剧了糟糕的表現，因为一元的东西……正以 85 分錢的价格在买卖。

基金经理去回购那些封闭式基金股票时，他们以资产净值回购……就能消除折扣。

访问我们:  unlockValueChinaMerchants.com

电邮我们:  ChinaMerchants@asmhk.com