Key Takeaways
- • Shareholders in Baillie Gifford US Growth Trust rejected Saba Capital's board resolutions at the annual general meeting, with 52.8% of votes cast opposing Saba's three nominees, marking the third failed attempt by the hedge fund to gain control.
- • Saba, led by Boaz Weinstein, holds a 29% stake in the trust and sought to appoint three directors, including a nominee named as managing director Sir James Waterlow, after twice being rebuffed over the past 18 months.
- • Turnout at the AGM exceeded 82%, which Baillie Gifford described as a 'clear endorsement from the vast majority of independent shareholders.'
- • The trust's long-term holding in SpaceX, established before its public listing over summer, and its stake in Anthropic have been key drivers of its portfolio.
- • Baillie Gifford urged the Financial Conduct Authority to accelerate reforms to protect investment trusts from activist opportunism, following proposed listing rule amendments in June.
Summary
Shareholders in the Baillie Gifford US Growth Trust voted against hedge fund Saba Capital's board resolutions at the trust's annual general meeting on 23 October 2026, according to This is Money. Saba, led by Boaz Weinstein, rejected 52.8 per cent of votes cast opposed its three nominees, with turnout exceeding 82 per cent. The vote marks the third time Saba has attempted to take control of the investment trust, which follows two earlier rebuffs over the past 18 months. Saba holds a 29 per cent stake and sought to appoint three directors, including Sir James Waterlow, a managing director of the trust.
Baillie Gifford welcomed the result as a 'clear endorsement from the vast majority of independent shareholders.' Trust chair Tom Burnet said that repeatedly revisiting matters on which almost all independent shareholders have expressed their view 'places an unnecessary burden on the Company.' The US Growth Trust argued that Saba's candidates would 'signal the end of the company's current strategy, heralding its transition into a vehicle for Saba's own benefit.'
The trust's performance has been supported by a long-term holding in SpaceX, acquired years before Elon Musk's company listed on the stock market over the summer. It also retains a sizeable stake in AI company Anthropic, alongside listed holdings such as Nvidia. Weinstein has criticised the trust for failing to deliver gains despite its early investments in SpaceX and unlisted growth companies including OpenAI and Anthropic. He has said Saba aims to improve performance for all shareholders.
Saba has targeted several investment trusts in recent years, including Impax Environmental Markets, Keystone Positive Change and Herald. Earlier this year, Weinstein successfully ousted the board of the Edinburgh Worldwide Investment Trust, also managed by Baillie Gifford. Baillie Gifford has urged the Financial Conduct Authority to move faster on reforms to protect investment trusts 'from opportunism that is not in the interest of shareholders as a whole.' The FCA proposed amendments to listing rules in June to curb the influence of activist investors after Saba increased its campaign against London-listed trusts.
Matthew Read, a senior analyst at QuotedData, called the result 'a victory for common sense and shareholder democracy,' adding that while shareholder activism is valuable when it holds underperforming boards accountable, 'repeatedly pursuing an agenda that almost all other shareholders oppose is another matter.' He said such battles are 'costly, disruptive and a distraction from the business of delivering investment returns.'
Baillie Gifford welcomed the result as a 'clear endorsement from the vast majority of independent shareholders.' Trust chair Tom Burnet said that repeatedly revisiting matters on which almost all independent shareholders have expressed their view 'places an unnecessary burden on the Company.' The US Growth Trust argued that Saba's candidates would 'signal the end of the company's current strategy, heralding its transition into a vehicle for Saba's own benefit.'
The trust's performance has been supported by a long-term holding in SpaceX, acquired years before Elon Musk's company listed on the stock market over the summer. It also retains a sizeable stake in AI company Anthropic, alongside listed holdings such as Nvidia. Weinstein has criticised the trust for failing to deliver gains despite its early investments in SpaceX and unlisted growth companies including OpenAI and Anthropic. He has said Saba aims to improve performance for all shareholders.
Saba has targeted several investment trusts in recent years, including Impax Environmental Markets, Keystone Positive Change and Herald. Earlier this year, Weinstein successfully ousted the board of the Edinburgh Worldwide Investment Trust, also managed by Baillie Gifford. Baillie Gifford has urged the Financial Conduct Authority to move faster on reforms to protect investment trusts 'from opportunism that is not in the interest of shareholders as a whole.' The FCA proposed amendments to listing rules in June to curb the influence of activist investors after Saba increased its campaign against London-listed trusts.
Matthew Read, a senior analyst at QuotedData, called the result 'a victory for common sense and shareholder democracy,' adding that while shareholder activism is valuable when it holds underperforming boards accountable, 'repeatedly pursuing an agenda that almost all other shareholders oppose is another matter.' He said such battles are 'costly, disruptive and a distraction from the business of delivering investment returns.'
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