Activist investor Saba Capital has disclosed a 5.2% stake in £1.8bn investment trust Allianz Technology (ATT).

The US hedge fund – which is invested in over 50 UK investment companies – crossed the threshold on 23 February.

Allianz Technology is the second-best performing investment trust of the past decade with a share price return of 791.5%. It also beat all but three open-ended funds: WisdomTree US Equity Income ETF, WisdomTree Europe Small Cap Dividend ETF, and Amundi MSCI Semiconductors.

But despite these strong returns, Michael Seidenberg’s trust is trading on a 9.8% discount to its net asset value (NAV).

Saba Capital has made a name for itself targeting undervalued investment trusts, and today launched an exchange-traded fund (ETF) doing just that.

The Saba Capital Investment Trusts Ucits ETF (UKIT) went live on Deutsche Börse, London Stock Exchange and Borsa Italiana with an ongoing charge of 1.5%.

Saba runs a similar fund in the US which targets discounted closed-end funds (CEFs) − the American equivalent of UK investment trusts. The Saba Closed-End Funds ETF is up 165.9% since launching in 2017.