Boaz Weinstein's Saba Capital has secured a decisive victory in its activist campaign against the board of Edinburgh Worldwide Investment Trust (EWIT), culminating in a shareholder vote that ousted chair Jonathan Simpson-Dent and five other board members, replacing them with three Saba-backed nominees [1]. This outcome grants Saba Capital control of EWIT, a fund managed by Baillie Gifford that specializes in public and private technology companies and is notable for its rare public-market access to SpaceX, which constitutes approximately 20% of EWIT's portfolio [1]. The SpaceX holding, which has generated a 947% return since 2018, was a central point of contention, with Weinstein criticizing the board's prior decision to reduce the position [1].
Weinstein also targeted EWIT's significant discount to net asset value (NAV), which he described as "unprecedented value destruction" in a November letter, though this discount has since narrowed [1]. Saba Capital now intends to propose itself as EWIT's next manager, maintaining the fund's London listing but shifting its strategy to focus on UK-listed investment trusts with a global remit and aiming for a single-digit discount to NAV through an active share buyback program [1].
The shareholder base of EWIT has shifted notably during the dispute, with retail and private wealth investors selling their positions and U.S. institutional funds, which accounted for 40% of the share base, voting against the incumbent board [1]. The boardroom battle was marked by mutual accusations of misleading investors and followed two previous unsuccessful attempts by Weinstein to change the board's composition [1].
Outgoing chair Simpson-Dent expressed disappointment for long-standing shareholders, stating they would lose exposure to the fund's technology-focused mandate, particularly its SpaceX stake, in favor of Saba's plan to invest in other UK investment trusts [1].
CONCLUSION
Saba Capital's takeover of EWIT marks a significant shift in the fund's strategy and governance, driven by dissatisfaction with the handling of its SpaceX investment and persistent discount to NAV. The outcome reflects changing shareholder dynamics and sets the stage for a new management approach focused on narrowing the NAV discount and restructuring the portfolio.