^{Photo: Bloomberg}

Edinburgh Worldwide Investment Trust has urged shareholders to vote against an activist campaign led by Saba Capital, the U.S.-based hedge fund founded by Boaz Weinstein. The technology-focused investment trust says the proposed overhaul of its board would create unnecessary disruption at a time when performance and governance reforms are already delivering results.

Saba Capital, which now owns roughly 30 percent of the trust, has forced a General Meeting scheduled for early next year. At that meeting, shareholders will be asked to approve resolutions that would remove the existing board and replace three directors with Saba-backed nominees.

EWIT’s Case for Stability

In a statement to investors, EWIT chair Jonathan Simpson-Dent described Saba Capital as an aggressive activist seeking control primarily for its own commercial benefit. He argued that the current board has made measurable progress over the past year and that abrupt leadership changes could undermine that momentum.

According to EWIT, the trust delivered a net asset value total return of 16.2 percent over the last 12 months. This compares with a 6 percent return from its benchmark, the S&P Global Small Cap Index. The board also pointed to active discount management, including share buybacks, which helped narrow the average discount to net asset value to 5.3 percent over the year. This is significantly tighter than the sector average of nearly 18 percent.

The board maintains that these improvements demonstrate a clear turnaround trajectory, reducing the need for radical governance intervention.

Saba Capital’s Argument for Change

Saba Capital contends that deeper structural reform is required. The hedge fund says EWIT has suffered severe value erosion over the past five years and that shareholders deserve stronger accountability and performance oversight.

In communications to investors, Saba described what it sees as unprecedented value destruction and argued that its proposed directors, Gabi Gliksberg, Michael Joseph, and Jassen Trenkow, have the experience necessary to unlock shareholder value. Weinstein has publicly stated that he has no confidence in the current board’s ability to close the trust’s valuation discount on a sustainable basis.

Saba previously attempted to replace the board earlier this year, but shareholders rejected that effort. Since then, the fund has increased its stake to 30 percent, giving it greater influence and the ability to block strategic actions, including a proposed merger between EWIT and Baillie Gifford’s U.S. Growth Trust earlier this month.

A Growing Rift in the Investment Trust Sector

The conflict reflects broader tensions across the UK investment trust industry, where persistent discounts have attracted activist investors seeking board changes, liquidity events, or wind-ups. Weinstein has been increasingly vocal about opportunities in closed-end funds on both sides of the Atlantic, warning recently that pressure is building across the sector.

Saba argues that boards have often asked for more time without delivering sufficient results, while incumbent managers say activists risk prioritizing short-term outcomes over long-term growth strategies.

Portfolio Strategy and the SpaceX Flashpoint

EWIT manages a portfolio valued at approximately $847 million, with exposure to smaller and emerging public and private companies focused on disruptive technology. One of its most prominent holdings is SpaceX, which represents close to 16 percent of total assets.

That holding has become a focal point of the dispute. Weinstein has accused Baillie Gifford of selling a portion of SpaceX shares at valuations far below levels speculated for a future initial public offering. He has claimed that shareholders contacted Saba expressing frustration over the timing and pricing of the sale.

EWIT has defended its approach, stating that portfolio decisions are made with long-term risk management in mind and that access to private market leaders such as SpaceX remains a key differentiator for the trust.

What Shareholders Will Decide

The upcoming General Meeting will give investors a clear choice between continuity and change. EWIT is asking shareholders to reject Saba’s resolutions and allow the current board to continue executing its strategy. Saba, meanwhile, is pressing for decisive action, arguing that only new leadership can restore confidence and close the valuation gap.

The outcome is likely to be closely watched across the investment trust sector, as it could set an important precedent for how boards respond to increasingly assertive activist investors.