Saba could receive a taste of its own medicine after GAMCO Investors, a rival US investment group, launched a bid to get one of its directors on the boards of two of the activist’s funds.

GAMCO, a Connecticut-based investment group trading as Gabelli, said it and some of its affiliates intended to nominate David Schachter for election as a trustee to the boards of Saba Income & Capital Opportunities (BRW.N) and Saba Capital Income & Opportunities Fund (SABA.N).

The nominations would be made at each fund’s 2026 annual shareholder meetings, it said.

Gabelli said the New York listed closed-ended funds traded at wide discounts of around 11.3% and 13.2% below the respective net asset values (NAV) of BRW and SABA.

It said “Schachter’s election would meaningfully enhance board independence and expertise and provide shareholders with a trustee committed to addressing discount erosion, improving accountability, and enhancing shareholder value.”

According to Gabelli, Schachter, a vice president of Gabelli Utility Trust (GUT.N), is used to the limelight as a commentator on CNBC and CNN on close-end funds. 

Gabelli did not say how much of BRW and SABA it and its affiliates own in the Saba funds.

Its move looks like a counter strike to Saba whose Capital Master Fund last month announced its intention to nominate Andre Clemot as an independent trustee for the board of the Gabelli Dividend & Income Trust (GDV).

Among other assets, both BRW and SABA own stakes in investment companies in the UK where Saba has led a high profile campaign and has unsuccessfully sought to win election for its representatives at investment trusts, most recently in a second tilt at Edinburgh Worldwide (EWI).

If Gabelli goes ahead with its challenge it may restore its reputation in the UK investment company market. In 2020 and 2021 it angered investors with an attempt to ignore a shareholder vote to liquidate the poorly performing Gabelli Value Plus Trust.