GAMCO Investors has put forward a significant nomination, proposing investment specialist David Schachter for positions on the boards of two funds managed by Saba Capital Management. This strategic move aims to address critical issues within the funds' operations and governance.
Addressing the Valuation Gap
The two funds in question, which focus on generating income and capital growth opportunities, are currently experiencing a notable discrepancy. They are trading at prices below the net asset value of their underlying holdings, creating what is known as a discount in the market. GAMCO asserts that Schachter's extensive expertise could be instrumental in narrowing this valuation gap, thereby offering better protection for the interests of shareholders.
A Career of Deep Expertise
David Schachter brings over four decades of specialised experience in the closed-end fund sector to this potential role. His career includes serving as Vice President of the Gabelli Utility Trust for more than a quarter of a century, a position that has provided him with profound insight into fund management and investor relations. Prior to this, he worked at a firm dedicated to this specific area of finance, further solidifying his niche knowledge.
Beyond his executive roles, Schachter is a recognised voice in financial commentary, having made appearances on major television networks such as CNBC and CNN. He is also committed to investor education, producing accessible materials through platforms like the Closed-End Fund Corner on Gabelli TV and YouTube. These resources are designed to demystify the complexities of fund operations for a broader audience.
Thought Leadership and Oversight
Schachter's influence extends to academic contribution; he co-authored the significant report titled 'Closed-End Funds Managed Distribution Policy.' This work highlights his standing as a thought leader within the closed-end fund community and underscores the depth of his analytical capabilities.
GAMCO has expressed confidence that Schachter's appointment would introduce stronger oversight mechanisms for the Saba-managed funds. The firm believes his involvement would empower investors, giving them a more transparent and influential voice in the governance and strategic direction of the funds. The final decision rests with the shareholders, who will cast their votes on this nomination during the funds' annual meetings scheduled for 2026.
About GAMCO Investors
Founded in 1977, GAMCO Investors, Inc. has established itself as a comprehensive investment management firm. It caters to a diverse clientele that includes institutional investors, individual retail investors, intermediaries, offshore entities, and private wealth clients. The firm offers a wide array of investment solutions spanning multiple asset classes, such as:
- Equities
- Debt Instruments
- Convertible securities
- Non-market correlated Merger Arbitrage strategies
GAMCO's investment approach covers various regions, market capitalisations, specific sectors like Gold and Utilities, and distinct investment styles including Value and Growth investing. This broad capability allows the firm to address complex financial needs across the investment landscape.
