Saba Capital Notches Win Against Funds’ Activist Voting Limits

A federal appeals court upheld Saba Capital Management LP’s win over a voting restriction adopted by several closed-end funds under the umbrella of BlackRock Inc., Tortoise Capital Advisors LLC, and other firms.

Under the so-called control share resolutions, shares that would put the holder at 10% or more of a fund’s voting power generally were stripped of voting rights.

The US Court of Appeals for the Second Circuit rejected the funds’ argument that Saba lacked legal standing to sue because it didn’t have a 10% stake in most of the funds and wasn’t at risk of imminent harm.

“Saba’s ...