Shareholders Deliver Decisive Verdict Against Hedge Fund Activism
In a resounding display of shareholder confidence, investors in Edinburgh Worldwide Investment Trust (EWIT) have overwhelmingly rejected a high-profile attempt by activist hedge fund Saba Capital to seize control of the trust's board and investment direction.
Record Turnout Sees Saba Proposals Defeated
At a crucial Requisitioned General Meeting, shareholders representing approximately 93 percent of shares—excluding those held by Saba Capital itself—voted against the hedge fund's proposed resolutions. The decisive vote saw 53.2 percent of total shares cast opposing Saba's motions, aligning with the current board's recommendations against the activist intervention.
The board reported that over 70 percent of total share capital participated in the vote, marking what they described as a record turnout for such proceedings. This substantial engagement underscores the significance shareholders placed on determining the trust's future governance and strategic direction.
Saba's Campaign to Replace Board Rejected
Saba Capital, which holds the position of EWIT's largest shareholder, had tabled resolutions seeking to remove the entire existing board and appoint independent directors approved by the hedge fund. This represented the latest chapter in Boaz Weinstein's ongoing campaign targeting UK investment trusts, which began in 2024 with his fund acquiring substantial stakes in several discounted trusts to push through governance reforms.
Between 2024 and 2025, Weinstein proposed radical resolutions at nine closed-end funds, though most faced strong rejection from investors following vigorous defensive actions from the investment trust sector. While Saba reached settlements with some trusts or pushed for their conversion into tracker funds, and five trusts offered shareholders net asset value exit opportunities, EWIT represents another significant setback for the activist approach.
Board Chair Hails Shareholder Support
Jonathan Simpson-Dent, chair of Edinburgh Worldwide Investment Trust, welcomed the shareholder decision, stating: "For the second time in less than a year, Edinburgh Worldwide's shareholders have voted decisively to reject Saba's proposal to install its own nominees to the Board and the uncertainty that would have entailed."
He emphasized that "shareholders have clearly stated their preference for EWIT's unique and differentiated mandate, investing in some of the world's most exciting and transformative companies." Simpson-Dent confirmed the board remains "resolutely focused on building momentum through the 'path for growth' strategy which has delivered strong returns for shareholders since its implementation."
Contentious Campaign and Counter-Allegations
The campaign grew particularly acrimonious as Weinstein launched a series of criticisms against decisions made by the trust's investment manager, Baillie Gifford. Central to his critique was the trust's decision to reduce its stake in Elon Musk's SpaceX shortly before the space company secured an $800 billion valuation during a December investment round.
Saba escalated the conflict by publishing an open letter accusing EWIT management of decisions that "defied commercial logic" and represented a "serious misstep." Ahead of the vote, Weinstein further alleged that Simpson-Dent had breached Financial Conduct Authority disclosure requirements during his previous tenure as chair of Homeserve.
Baillie Gifford responded robustly to the allegations, launching its own 'Stop Saba' campaign and reporting Weinstein to City regulators for what it claimed were false statements about its investment track record.
Looking Forward After Contentious Year
Despite the decisive rejection of Saba's proposals, Simpson-Dent acknowledged that "Saba remains our largest shareholder and we will continue to seek constructive engagement with them to develop potential solutions that allow us to move forward."
He concluded: "Following a year of significant and costly distraction, we are ready to return our full attention to our primary purpose: investing in innovation, transformation, and exceptional potential in a way that respects the clear wishes expressed by the majority of shareholders both last February and again today."
The vote represents a significant victory for the current management and a setback for activist hedge funds seeking to impose rapid governance changes on established investment trusts through shareholder resolutions.
