Sparks - Edinburgh Worldwide Investment Trust

Edinburgh Worldwide Investment Trust (EWI) shareholders have rejected activist hedge fund Saba Capital Management’s attempt to replace the entire board, marking the second defeat for Boaz Weinstein’s firm in less than a year. At a general meeting on 20 January, 53.2% of votes cast opposed Saba’s nine resolutions to remove all six directors and install three of its own nominees. Excluding Saba’s holding, 92.7% of shareholders voted against the proposals.

What’s going on here?

Shareholders representing over 70% of total issued share capital participated in the requisitioned meeting, a record turnout exceeding last year’s vote. Saba had targeted EWI’s persistent discount to net asset value and longer-term share price underperformance. The hedge fund also raised concerns over the trust’s SpaceX holding. The board dismissed these claims and noted its Path for Growth strategy has delivered strong returns since implementation.

What does this mean?

The decisive vote provides clarity for the Baillie Gifford-managed trust, which invests in early-stage growth companies across public and private markets. Chair Jonathan Simpson-Dent described the activist campaign as a ‘significant and costly distraction’ and confirmed the board would return focus to its growth strategy. However, Saba remains the largest shareholder, meaning the threat of future activism remains. Simpson-Dent indicated the board would seek constructive engagement with Saba to find solutions.

Why should I care?

The outcome demonstrates the power of shareholder mobilisation in defending against activist campaigns, with strong engagement from retail shareholders who hold through digital platforms. For investors, the key question is whether EWI can sustain its recent momentum and continue narrowing the NAV discount while Saba remains on the register. The board’s commitment to its differentiated mandate investing in transformative companies suggests continuity of strategy.