Activist hedge fund firm Elliott Associates wants Scottish Mortgage Trust to ‘deliver shareholder value’ and improve returns to investors after building a 5% stake in the UK’s larger listed equities fund, according to a report by CityWire.
The report cites a post-market disclosure to the stock exchange on Thursday as revealing that the Delaware-based firm had acquired 6.5m shares – 0.5% – of the Baillie Gifford flagship fund, along with an additional 4.57% in equity swaps to take it over the 5% disclosure threshold.
According to an unnamed CityWore sources with knowledge of the situation, the holding, which worth £607m in total, is not new with Elliot having built it over some time having first invested last year.
Scottish Mortgage’s announcement of a £1bn share buyback scheme also came following dialogue with Elliott, according to the report.
