Activist investor Saba Capital has questioned the decision by Edinburgh Worldwide Investment Trust (EWI) to reduce its SpaceX stake in its latest open letter.
Saba says shareholders need ‘full transparency’ regarding manager Baillie Gifford’s decision to sell down its stake two months ahead of the firm’s scheduled revaluation.
It describes the decision to reduce SpaceX, the ‘crown jewel’ of the portfolio, as defying commercial logic and part of an agenda to merge with Baillie Gifford US Trust (USA).
| Price: 226p +1.2% | NAV: 234.7p |
| Market Cap: £715m | Yield: n/a |
It’s hard to argue with Saba’s claim that SpaceX is the crown jewel and ‘defining asset’ in EWI’s portfolio and possibly the primary reason why investors own shares in the first place.
Interestingly, Scottish Mortgage Investment Trust (SMT), the flagship fund run by Baillie Gifford, hasn’t reduced its stake, which still represents 7.6% of the portfolio.
This open letter is all part of Saba’s campaign to convince shareholders to vote for its resolutions at the upcoming general meeting on 20 January.
Read the open letter here: https://sabacapital.s3.us-west-1.amazonaws.com/Saba+Capital+Open+Letter+to+EWI’s+Board+Regarding+SpaceX.pdf
Read related news: https://sharesify.com/edinburgh-worldwide-fires-back-at-saba/
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