Saba Capital Secures Victory in Edinburgh Trust Shareholder Showdown
American activist fund Saba Capital has unleashed a fresh tirade against Edinburgh Worldwide Investment Trust (Ewit), branding its board as "out of touch" with shareholders following a decisive victory in a critical shareholder vote. The New York-based hedge fund, led by billionaire Boaz Weinstein, emerged triumphant in the first of three major votes in its prolonged activist campaign against the FTSE 250 trust.
Years-Long Battle Culminates in Shareholder Rebuke
Saba Capital has been waging an aggressive campaign against Edinburgh Worldwide Investment Trust for years, accusing its leadership of overseeing five years of "unacceptable" performance and failing to align with shareholder priorities. This victory marks a significant turning point after previous setbacks, including a failed poll in early 2025 during Saba's initial assault on Britain's investment trust sector, which targeted seven different trusts.
In January, Saba leveraged its position as Ewit's largest investor to call a requisitioned general meeting, which the trust's board managed to repel. However, the hedge fund persisted with a third wave of resolutions to be voted on at the upcoming annual general meeting (AGM), setting the stage for this latest confrontation.
Shareholders Reject Board's Tender Proposal
Edinburgh Worldwide's board had urged investors to support a tender offer to wind up the trust ahead of the AGM. In contrast, Saba—the closed-end fund's largest shareholder with approximately 30 percent of shares—proposed an alternative plan. Shareholders ultimately backed Saba's proposal, which offers investors the option to exit at the full value of their holdings in the coming weeks or after the IPO of SpaceX, the trust's flagship holding.
The board's offer would have allowed shareholders to realize all investments except the SpaceX portion, which would be returned at a future liquidity event, such as its anticipated public market debut, before winding up the trust. In a narrow vote, 53.8 percent of shareholders rejected Ewit's proposal, compared to 46.2 percent in support.
Heated Exchange and Escalating Tensions
The battle for control of the 130-year-old investment vehicle has been characterized by acrimonious exchanges. Saba has accused the board of decision-making that "defied commercial logic" and claimed Ewit covered up chair Jonathan Simpson-Dent's failings in a previous role—allegations the trust denies. In a statement on Monday, Saba intensified its attacks, criticizing the board's track record.
"We thank our fellow shareholders for their support in rejecting the Ewit board's deeply flawed tender proposal," Saba stated. "The board's failure to put forward a well-thought-out tender that the majority of shareholders are willing to support makes it clear that chair Jonathan Simpson-Dent and his fellow directors are completely out of touch with their own shareholders."
Implications for Weinstein's Broader Campaign
This outcome represents one of the most significant victories yet for Boaz Weinstein in his campaign to gain control of seven investment trusts. Shareholders will now vote on whether to oust the trust's board and replace them with candidates proposed by Saba, potentially reshaping the trust's leadership and strategy.
In response, Simpson-Dent expressed disappointment, stating, "This is a very disappointing outcome, particularly given the continued strength of support from independent shareholders who have consistently rejected Saba's plan for control. This process clearly demonstrates the extent to which the current framework allows a determined minority shareholder to exert disproportionate influence, even where its objectives diverge from those of the wider shareholder base."
The escalating conflict underscores the growing influence of activist investors in the investment trust sector and sets the stage for further confrontations at the upcoming AGM.
