Activist hedge fund Carrousel Capital says it will continue monitoring the board of the Gartmore European investment trust following its unsuccessful attempt to win board representation, according to a report by Reuters.
Shareholders voted against Carrousel’s proposals to appoint three directors, despite the hedge fund holding a 28.03% stake in the £382m trust. The result saw overwhelming support for the incumbent board, with nearly all other votes backing the re-election of existing directors.
Carrousel had argued that the trust’s board was insufficiently focused on shareholder value, though it denied seeking control or intending to wind up the vehicle. Following the vote, the firm said it had not decided whether to retain or sell its stake, but confirmed it would continue to scrutinise board performance and engage in further discussions.
The trust’s chairman said the outcome reflected investor confidence in its existing investment approach and governance structure, highlighting broad support from retail investors and advisers.
Despite the defeat, Carrousel indicated it remained engaged with management and would consider its next steps, leaving the possibility of further activist action or an eventual exit open.
