Saba exit expected after Montanaro UK Smaller Companies' £19m buyback

Pace of buybacks high in 2025

Montanaro UK Smaller Companies (MTU) has bought back £19m worth of shares, in a move analysts expect will lead to the exit of US activist hedge fund Saba Capital.

The buyback – MTU's first since 2008, following the introduction of a policy aimed at maintaining a single-digit discount – equates to around 12% of share capital. This is roughly equivalent to the stake last disclosed by Saba, which was 12% on 5 December 2024. As a result, Deutsche Numis analysts Ewan Lovett-Turner, Gavin Trodd and Ash Nandi said: "We expect [we] will see Saba exiting". Greencoat UK Wind launches further £100m share buybacks as investment management co-head departs Saba's presence in the UK investment trust sector has stirred controversy after, in December, it ...