Saba Capital Raises Concerns Over EWI’s SpaceX Sell-Down, Calls for Board Transparency and Shareholder Action
Saba Capital Management, L.P., the largest shareholder of Edinburgh Worldwide Investment Trust PLC (EWI), has issued an open letter to the company’s Board of Directors expressing serious concerns regarding a recent reduction of EWI’s stake in SpaceX. Saba’s letter highlights a pattern suggesting the sale may have been timed to facilitate a merger between EWI and the Baillie Gifford US Growth Trust (USA), potentially benefiting the Board and Baillie Gifford at shareholders’ expense.
Concerns Over Timing and Rationale
Saba notes that the sell-down of SpaceX occurred in October 2025, just two months prior to a scheduled revaluation. According to Saba, the timing appears highly suspicious given:
- EWI and USA reduced their SpaceX holdings by 35% and 49%, respectively, while other Baillie Gifford-managed trusts largely maintained their positions.
- SpaceX’s revaluation in December 2025 revealed that the October sales were likely executed at a valuation significantly below the revalued price, resulting in an estimated £37 million loss for EWI shareholders.
- The sale preceded a merger announcement in December 2025, suggesting that the sell-down may have been a precondition for the merger to meet regulatory and tax requirements.
Potential Conflicts of Interest
Saba also questions whether the Board, including Chairman Jonathan Simpson-Dent, had incentives to approve the merger that could benefit themselves or Baillie Gifford while disadvantaging shareholders. The letter raises concerns that:
- The merger may have allowed Baillie Gifford to maintain control over the combined mandates of EWI and USA.
- Board members could gain leadership positions post-merger, potentially at the expense of shareholder interests.
- The Board’s silence on the sell-down indicates a lack of accountability and oversight.
Key Questions for the Board
Saba is calling on the EWI Board to provide full transparency to shareholders and answer critical questions, including:
- At what valuation and to whom was EWI’s SpaceX stake sold in October 2025?
- Why was the sell-down not disclosed to the market at the time?
- Did the Board know about the upcoming December revaluation before the sale, and if so, why did it not wait?
- Was facilitating the merger with USA a factor in the decision to reduce SpaceX holdings?
- When was the merger proposed, and who was involved in the discussions?
- Has the Board held Baillie Gifford accountable for the sell-down?
- Were any communications regarding the sale or merger conducted through private channels, such as disappearing messages?
Call to Action
Saba urges EWI shareholders to demand answers before the general meeting on 20 January 2026 and to consider electing a new, independent Board with strong governance expertise and the ability to act in shareholders’ best interests.
The open letter emphasizes that, unless the Board provides satisfactory responses by 9 January 2026, Saba reserves the right to pursue further action, including legal proceedings.
About Saba Capital Management
Saba Capital Management, L.P. is a leading investment management firm committed to protecting shareholder interests and promoting transparency and accountability in publicly traded companies.
