Saba Capital Management has seized control of the Edinburgh Worldwide investment trust after a shareholder vote at the company’s annual general meeting on 30 April 2026, marking the activist hedge fund’s first victory in its campaign to restructure the UK’s closed-ended fund sector.
Saba Takes Control
Shareholders voted to remove five independent directors from the Edinburgh Worldwide board and approved three nominees put forward by Saba. The resolutions to re-elect the incumbent directors failed to secure sufficient votes, with approximately 61% voting against them. Edinburgh Worldwide said in a stock market update that there were “insufficient votes” in favour of the five directors, blaming a decline in private wealth and retail shareholder support.
Jonathan Simpson-Dent, the outgoing chair of Edinburgh Worldwide, described the outcome as a “disappointing day” for long-standing investors. He warned that they would lose exposure to “this exciting mandate focused on next-generation technology, seemingly in favour of Saba’s plan to invest in other UK investment trusts.” Simpson-Dent added that retail and private wealth shareholders had been “ground down by Saba’s repeated attacks” and that a significant number had already chosen to exit the company, replaced by institutions seeking to capture the upside potential in the trust’s substantial holding in Elon Musk’s SpaceX, which represented approximately 20.4% of its assets as of 31 March 2026.
Richard Stone, chief executive of the Association of Investment Companies (AIC), said: “Thousands of shareholders will be disappointed by this announcement, having twice rejected directors nominated by Saba only to see them appointed to the board at the third attempt.”
Saba’s Strategy: Targeting Undervalued Trusts
Saba, led by Boaz Weinstein, has been building sizeable stakes in UK investment trusts since late 2024. The hedge fund’s primary objective is to address what it views as underperforming closed-ended funds trading at significant discounts to their net asset value. Saba’s typical approach involves acquiring a large stake, then pushing for board changes to unlock shareholder value — often through measures such as tender offers or liquidation.
In early 2025, Saba launched its “Mind the Gap” campaign, highlighting underperformance and persistent trading discounts across the sector and arguing that funds were vulnerable to activist intervention. The hedge fund stepped up its campaign in March 2026 by launching an actively managed UCITS exchange-traded fund focused on discounted UK investment trusts, giving it a vehicle to further its strategy.
This is not Saba’s first attempt to take control of a UK investment trust. It previously lost shareholder votes with the Baillie Gifford US Growth Trust and the Herald Investment Trust, and saw its rejection of continuation tender offers at Impax Environmental Markets. But persistence paid off with Edinburgh Worldwide after two failed takeover attempts — in early 2025 and again in January 2026 — finally securing control at the third attempt.
Danni Hewson, head of financial analysis at AJ Bell, said Saba had been “like a dog with a bone” on Edinburgh Worldwide. She noted: “While it may have successfully fought off Saba’s previous efforts – both last year and at the beginning of this year – the trust has suffered an ebbing away of long-term shareholders over time and this has made the activist’s task of assuming control somewhat easier.”
According to Hewson, Saba’s plan now is to liquidate the SpaceX stake once the looming initial public offering takes place and then turn the trust into a vehicle for investing in other undervalued UK investment trusts. AJ Bell research published in January 2026 showed Saba has holdings in more than 40 UK-listed trusts.
What the Victory Means for Investors
The outcome at Edinburgh Worldwide reflects a significant shift in its shareholder structure. There has been a material reduction in ownership by private wealth and retail shareholders, replaced by US institutional investors who, together with Saba, now represent more than 40% of the company’s issued share capital. Simpson-Dent said he expects many more retail and private wealth shareholders to follow, and warned that this outcome “should represent a wake-up call for the investment trust sector and its regulators.”
Hewson suggested that Saba’s win will create “consternation in the boardrooms of other investment trusts.” She said the trust universe had been “vulnerable thanks to persistent discounts to the value of underlying assets, uneven performance and a growing preference for passive over active funds.” While some investors may welcome Saba taking control and attempting to turn things around, Hewson cautioned that hedge funds often approach investments with shorter time horizons, focusing on making money quickly. “That may not be a bad strategy if it works but it might not align with your own investment plan, risk tolerance, or your reasons for buying the trust in the first place.”
Simpson-Dent has also criticised the Financial Conduct Authority for what he described as its “hands-off” approach to activist campaigns, suggesting it could encourage similar attacks. The FCA has stated it is reviewing relevant rules but noted some issues fall outside its current powers. The AIC has separately called on the government and regulators to act to protect shareholders’ interests, with chief executive Richard Stone insisting that Saba, as a minority shareholder, must respect the views of other investors.
Hewson summed up the moment: “Saba’s efforts, which largely began in 2025, were effective as a wake-up call for the industry. However, now it has won control of a trust, warnings about its short-termist and self-serving approach and the impact on the interests of individual investors will be put to the test.”
