Saba Capital has named the three directors it hopes will take the reins at Edinburgh Worldwide (EWI ), as it formally requisitions a general meeting to replace the incumbent board. 

This is the second time the US hedge fund has made such a move against the EWI board, with a vote back in February having been overwhelming voted down by shareholders. 

Founder and CIO Boaz Weinstein outlined his plans in an open letter last week, calling out the Baillie Gifford-run global small-cap trust for having ‘objectively and categorically’ failed to improve performance since the start of the year. 

Yesterday, EWI’s biggest shareholder, holding approximately 30% of the £706m vehicle, officially triggered action, restating it ‘remains profoundly disappointed with EWI’s performance’.

It also takes issue with an ‘inadequate’ level of shares repurchased, claiming EWI’s buyback activity over the past three years has been below the average for London-listed trusts which are undertaking buybacks. Saba says this highlights ‘the board’s lack of decisive action to narrow the prolonged discount to NAV.’

At the proposed meeting, scheduled for early 2026, shareholders will be asked to vote on resolutions to remove all members of the existing board and appoint three new directors that Saba said were independent. 

They have been named as Gabi Gliksberg, founder & managing partner for ATG Capital Management, Michael Joseph, portfolio manager & deputy CIO at Stansberry Asset Management, and Jassen Trenkow, a former executive at Barclays and Goldman Sachs. 

According to data from the Association of Investment Trusts (AIC), shares in EWI are down 37.8% over past five years versus 0.4% gains for its average global smaller companies peer. Its share price discount to net asset value (NAV), as of yesterday, rested at just over 5%. 

EWI has responded to the notice, with its board recommending shareholders take no immediate action and await a further announcement ‘in due course’.

Chair Jonathan Simpson-Dent, said: ‘Saba has for a second time launched a power grab calling for the entire board to be replaced with US candidates of their own choosing. The goal is clear – to gain control of the company to prioritise their own commercial interests. 

‘Saba’s letter does not acknowledge the significant progress [the trust] has achieved since this board reset the company on a path for growth a year ago.’

Simpson-Dent said that since, the NAV total return has been 13.1%, well ahead of 5% for the S&P global small cap index, the company’s benchmark index. 

‘Furthermore, the company’s proactive steps over the last year have supported a tightly managed discount…significantly narrower than the global smaller companies peer group weighted average discount of 11%,’ he said.

The chair concluded by questioning the independence of Saba’s proposed directors.

‘Shareholders should not be fooled by this US hedge fund’s claims. This board remains fully committed to serving the best interest of all shareholders. Saba’s proposal would result in a board answerable to only one,’ he said.