In an attempt to acquire a UK investment trust, Saba claims its first victory

On its third attempt, the hedge fund succeeded in replacing the Edinburgh Worldwide Investment Trust's board

This is the impact of the change on investors.

Saba Capital Management, an activist investor hedge fund, has achieved its first success in its continuous efforts to replace the boards of multiple investment trusts.

Edinburgh Worldwide (LON:EWI) (EWIT) was voted over by shareholders today, and Saba won control.

Since late 2024, Saba has been accumulating a sizable stake in a number of UK investment trusts in an effort to revive closed-ended funds that it believes are underperforming and have significant discounts to net asset value.

BFIA problems nowadays. Up until now, the investment trust sector had mainly ignored Saba's challenges due to worries about its investment approach.

However, Saba was able to gain enough clout to call and win a vote at the annual general meeting today (April 30) after making a few unsuccessful attempts to replace the EWIT board since last year.

Three Saba nominees were approved, but there were "insufficient votes" to re-elect five independent directors, according to EWIT's stock market update. This was attributed to a decline in private wealth and retail shareholders.

The Association of Investment Companies' (AIC) chief executive, Richard Stone, stated: "Thousands of shareholders will be disappointed by this announcement, having twice rejected directors nominated by Saba only to have them appointed to the board on a third attempt. A "

Investor implications of the Saba vote.

After losing votes with funds like the Herald Investment Trust and the Baillie Gifford US Growth Trust, this is not Sabas' first attempt to seize control of a UK investment trust.

But after a few unsuccessful takeover attempts, its perseverance paid off with EWIT. On what Edinburgh Worldwide chair Jonathan Simpson-Dent called a "disappointing day," Saba will now be in charge of its first UK investment trust.

Long-standing shareholders will no longer be exposed to "this exciting mandate focused on next-generation technology, seemingly in favor of Saba's plan to invest in other UK investment trusts," he warned. The "

Simpson-Dent continued, "Saba's persistent attacks have grounded down retail and private wealth shareholders." Institutions looking to take advantage of EWIT's significant exposure to SpaceX have already replaced the large number of people who have already decided to leave the company.

"I anticipate a large influx of private wealth and retail shareholders. Regulators and the investment trust industry should take note of this. The "

According to Danni Hewson, head of financial analysis at AJ Bell, Saba has been "like a dog with a bone" on EWIT.

"The trust has suffered an ebbing away of long-term shareholders over time, and this has made the activists' task of assuming control somewhat easier, even though it may have successfully fought off Sabas' previous efforts both last year and at the beginning of this year," she stated.

"The impending market launch of Edinburgh Worldwide's largest holding, Elon Musk's rocket and satellite company SpaceX, makes the timing of Sabas' victory even more delicate. After the successful IPO, it appears that Sabas intends to sell this stake and use the trust as a vehicle for investing in other cheap UK investment trusts. A "

Hewson predicts that the boardrooms of other investment trusts will be troubled by Sabas' victory. According to a January 2026 AJ Bell study, Saba owns shares in over 40 UK-listed trusts.

"The trust universe has been vulnerable due to persistent discounts to the value of underlying assets, uneven performance, and a growing preference for passive over active funds," she continued. The "

In light of this, investors might embrace Saba taking charge and attempting to make things better.

Hedge funds, on the other hand, frequently approach investments with shorter time horizons and may be more concerned with making money fast.

If it succeeds, this might not be a bad strategy, but it might not be in line with your personal investment strategy, risk tolerance, or the reasons you initially purchased the trust.

Hewson continued: "The industry was effectively awakened by Sabas's efforts, which mostly started in 2025.

But now that it has taken control of a trust, concerns about its self-serving, short-termist strategy and how it will affect individual investors' interests will be tested. The "