Edison Analyzes Edinburgh Worldwide Investment Trust Amid Saba Capital Challenge

Edison Investment Research has released a report analyzing the challenges faced by Edinburgh Worldwide Investment Trust (EWI). The trust is under scrutiny from Saba Capital, a US activist hedge fund. Saba aims to replace EWI's independent board with non-independent directors and shift the management from Baillie Gifford to itself. The proposed changes come at a delicate time, as small-cap growth stocks have faced devaluation.

Despite recent underperformance, EWI's board has implemented measures to improve the trust's value, resulting in a notable net asset value increase and a narrowing discount. Saba Capital holds a significant stake, approximately 25%, influencing these developments. EWI's shareholders are urged to act before the general meeting on 14 February 2025, to retain EWI's unique investment strategy which focuses on high-potential growth companies.