Edinburgh Worldwide Investment Trust (EWIT) has called for greater transparency from activist hedge fund Saba Capital Management as tensions escalate ahead of a shareholder vote on a proposed board overhaul, according to a report by Alliance News.
In an open letter to Saba founder Boaz Weinstein, the Edinburgh-based trust demanded “full transparency and clarity” around Saba’s intention to remove EWIT’s entire independent board and replace it with three US-based nominees. The request comes ahead of a general meeting scheduled for 20 January, at which shareholders will vote on Saba’s proposals.
Saba, which owns approximately 30% of EWIT’s shares, renewed its campaign this week to secure backing for the board changes. EWIT said it had previously put forward what it described as “credible options” to address shareholder concerns, but claimed these were rejected by Saba.
The trust is seeking detailed information on the experience of Saba’s proposed directors, particularly their familiarity with UK-listed investment trusts, their relationship with Saba Capital and whether they have previously represented the hedge fund. EWIT has set a deadline of 5 January for Saba to provide what it called “unambiguous answers”.
EWIT also wants clarity on Saba’s broader intentions should its nominees be elected, including whether the hedge fund plans to alter or replace the trust’s investment manager, change its investment strategy, increase fees or provide shareholders with a full exit if the strategy is modified.
Weinstein has posted a statement on X in reponse to the open letter highlighting that the firm’s board nominees “are genuinely independent” and that Saba hasn’t disclosed a plan because “all decisions about EWI will be made by a new, independent Board – not by Saba”.
Weinstein has also questioned the sale two months ago of “a large chunk” of EWI’s holding in SpaceX, a decison he claims “has cost shareholders ~£37m”.
Saba has also criticised individual EWIT directors, including chair Jonathan Simpson-Dent and recently appointed board member Gregory Eckersley, questioning disclosures and governance standards. EWIT has defended its board and governance framework.
