Saba Capital launches fresh attack on Baillie Gifford investment trust

US activist investor Saba Capital is making a fresh attempt to oust the board at the Baillie Gifford-managed Edinburgh Worldwide Ord (LSE:EWI).

• Invest with ii: Buy Investment Trusts | Top UK Shares | Open a Trading Account

Saba said EWI’s board had “objectively and categorically failed” to deliver value for shareholders since fighting off the US activist earlier this year, and that it intends to requisition another meeting where shareholders will vote on whether to “remove the entire incumbent board and, in its place, appoint a new board composed solely of qualified, independent directors who are committed to delivering long-term value for all shareholders”.

Saba’s founder Boaz Weinstein said in a letter to the board that the global small-cap trust had underperformed its benchmark over different periods, while the trust has carried out “inadequate” share buybacks over the past three years.

• The investment trusts in Saba's sights: what it means for investors
• Autumn Budget 2025: everything you need to know

While Weinstein cited an incorrect benchmark in his letter, the table shows that the trust’s shares have struggled versus both the S&P Global Small Cap index and its peers.

“We remain profoundly frustrated by the board’s prolonged inertia, especially given the decisive actions taken by the boards of several other UK investment trusts to increase share prices and narrow persistent discounts to net asset value,” Weinstein said.

“We do not have faith in the current board’s ability to implement the necessary strategic changes. As the company’s largest shareholder, we feel a duty to our fellow shareholders to drive this essential change.”

EWI chair Jonathan Simpson-Dent responded by saying:  "We are disappointed by Saba's open letter. Throughout the last year we have sought to engage with Saba to understand their objectives and to enter into a constructive dialogue regarding options for an equitable and holistic solution, including a return of capital."

He added that Saba's letter "does not represent the significant progress EWI has made since this board reset the Company on a path for growth a year ago", pointing to a 17.5% NAV return.

"Furthermore, the company's actions over the last year have supported a tightly managed discount, currently 5.6%, significantly narrower than the Global Smaller Companies peer group weighted average discount of 10.9%," he said.

"While we are open to discuss board composition with Saba, we would strongly reject any proposal to replace the entire board and the ambiguity that would follow."

Source: Winterflood, as at 27/11/2025. Past performance is not a guide to future performance.

What’s the plan?

It’s worth noting that, as with its original plan to overthrow the board, Saba’s plan is not entirely obvious.

“It remains unclear whether this is another attempt for Saba to gain control of the vehicle, as we await details of the identities of the proposed new ‘qualified, independent directors’,” said Winterflood head of investment trusts research Emma Bird.

“Nevertheless, we suspect there will be an element of fatigue for retail investors, who may not vote in as large a number as last year, which saw industry-wide campaigns and significant media attention.

“As such, we would not be surprised if this requisition proves successful given Saba’s significant shareholding, if the board does not put forward alternative proposals in the near term.”

Edinburgh Worldwide is one of the seven trusts Saba originally targeted a little under a year ago, when it attempted to overthrow the boards and take over.

• Fund and ETF data: November 2025
• Sign up to our free newsletter for investment ideas, latest news and award-winning analysis

All seven trusts did comfortably defeat Saba but the problem hasn’t gone away, given that it still owns around 30% of EWI, with a similar presence on Herald Ord (LSE:HRI) and Baillie Gifford US Growth Ord (LSE:USA). Saba voted against the reinstatement of USA’s board a few months ago, with them narrowly surviving the vote.

Saba has been pretty active in recent months, with plans to launch an exchange-traded fund (ETF) focused on UK investment trusts and plenty of positions initiated in different vehicles.

It enjoyed a victory earlier this month when Smithson Investment Trust Ord (LSE:SSON) unveiled plans to convert to an open-ended vehicle.

Saba has also continued its foray into the alternative assets space, disclosing a 5% position in private equity play Pantheon International Ord (LSE:PIN) just last week.

At the time of writing, Edinburgh Investment Trust had not issued a stock market response to Saba’s open letter.