Hedge fund Saba Capital Management, the largest shareholder in Edinburgh Worldwide Investment Trust PLC (EWI), has publicly challenged the trust’s board over a recent sell-down of its SpaceX stake, which Saba claims may have been timed to facilitate a proposed merger with Baillie Gifford’s US Growth Trust (USA).
In an open letter to EWI’s board, Saba raised concerns that the October 2025 reduction of EWI’s SpaceX holdings – 35% of the trust’s position – came just two months before a scheduled SpaceX revaluation, resulting in estimated losses of £37m for shareholders. Saba argued that the sell-down appears to have been executed to enable the merger, which could otherwise have been blocked by regulatory constraints related to combined portfolio limits.
Boaz Weinstein, Saba’s founder and CIO, wrote that the timing and rationale for the sale remain opaque and urged the board to answer key questions on the valuation, decision-making process, and potential connections between Baillie Gifford’s actions and the merger.
Saba further called on shareholders to vote for the removal of the incumbent board at EWI’s upcoming general meeting on 20 January 2026, proposing the election of three new independent directors with governance and investment expertise.
According to Saba, the October sell-down and lack of disclosure “raises serious questions about whether the board is capable of acting as an effective check on Baillie Gifford,” the trust’s investment manager.
The controversy centres on SpaceX, described as the crown jewel of EWI’s portfolio, and the broader governance implications of merger-driven trading decisions. Saba highlighted that other Baillie Gifford-managed trusts reduced their SpaceX holdings by smaller amounts, suggesting that the EWI and USA sell-downs were uniquely aligned with merger preparations.
The fund has indicated that it reserves all rights, including potential legal action, if satisfactory explanations are not provided before the shareholder vote.
In response, an EWIT spokesperson said: “Saba’s open letter today adds to the numerous inaccurate statements and misleading assertations it is making designed to mislead shareholders as part of this US hedge fund’s aggressive campaign to achieve its ultimate objective – to seize control of the Company to prioritise its own commercial interests to the potential detriment of other shareholders. We look forward to answering shareholders questions in an open Q&A session this Friday, where we will also address Saba’s misleading assertations on SpaceX.”
