The American hedge fund manager leading a charge to overhaul Britain's investment trust sector has intensified his criticism of a prominent Baillie Gifford fund, just days before a decisive shareholder meeting.
Open Letter Fuels Dispute Over SpaceX Sale
Boaz Weinstein, the founder of Saba Capital, has published an open letter to the board of the Edinburgh Worldwide Investment Trust (Ewit). In it, he voices deep concerns about the trust's decision to sell a significant portion of its stake in Elon Musk's SpaceX last year.
Weinstein alleges that Ewit reduced its holding in the private space firm by more than 35% in October 2024. This move came just weeks before a scheduled revaluation that many anticipated would sharply increase SpaceX's worth. By December, reports suggested SpaceX was exploring a public listing with a potential valuation as high as $1.5 trillion (£1.1 trillion), with a current valuation set at $800 billion.
Saba claims the trust reported an upward revaluation on its remaining holding but did not disclose the sale to shareholders. "SpaceX is the defining asset in [Ewit's] portfolio," Weinstein wrote, arguing that missing out on a large part of the revaluation gains was a "serious misstep." He also questioned whether Ewit's recent merger with the Baillie Gifford US Growth Trust influenced the decision to sell.
Investment Trust Sector Under Sustained Pressure
This latest salvo marks an escalation in a long-running conflict between activist investors like Saba and the boards of UK-listed investment trusts. Since 2024, Saba has built large positions in trusts trading at wide discounts to their net asset value, pushing for governance reforms and improved performance.
Many trusts have struggled with persistent discounts, driven by the popularity of passive funds and challenges facing smaller London-listed companies. However, Saba's previous efforts, which culminated in a series of votes at the start of 2025, were roundly rejected by shareholders at Ewit and ten other targeted trusts.
Undeterred, Weinstein has revived his campaign ahead of Ewit's upcoming annual general meeting later this month. He has tabled resolutions to remove the trust's entire leadership and appoint three independent nominees to its board.
Key Shareholder and Trust Hit Back
The trust and a major shareholder have already pushed back strongly against Saba's proposals. Pensions giant Legal & General, which owns a 1.5% stake in Ewit, stated it plans to reject all of Saba's resolutions, citing a lack of sufficient detail.
An Ewit spokeswoman dismissed the open letter, stating it "adds to the numerous inaccurate statements and misleading assertions" made by Saba. She accused the US hedge fund of running an aggressive campaign designed to mislead shareholders, with the ultimate goal of seizing control to prioritise its own commercial interests at the potential expense of others.
The outcome of the forthcoming vote will be a critical test for both Saba's activist strategy and the resilience of the traditional investment trust model in the UK.
