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Hedge Fund Raids SpaceX Investor Board
19 Apr
Summary
- A US hedge fund is attempting to seize control of an investor in SpaceX.
- Shareholders are urged to vote against the hedge fund's board nominees.
- SpaceX is planning a potential $1.3 trillion stock market listing soon.
Shareholders of the Edinburgh Worldwide Investment Trust (EWIT) are being urged to actively participate in the upcoming annual general meeting to prevent Saba Capital, a New York-based hedge fund, from taking control. Saba's financier, Boaz Weinstein, is attempting for the third time to replace EWIT's entire board with his own nominees.
EWIT's most significant asset is its stake in Elon Musk's SpaceX, valued at approximately £165 million. This takeover attempt gains urgency as SpaceX reportedly plans to list on the stock market later this year, potentially valuing the firm at up to £1.3 trillion.
Past attempts by Saba in January and last year were thwarted by strong shareholder turnout. However, EWIT's management warns that voter fatigue could allow Weinstein to succeed this time, potentially acquiring the valuable SpaceX holding 'on the cheap'.
Shareholder advisory firms PIRC and ISS have recommended rejecting Saba's nominees, citing concerns over board independence and a lack of a compelling case for change. Baroness Altmann, a shareholder rights campaigner, has highlighted the power of ordinary investors to defend their interests against such tactics.
To defeat Saba, EWIT estimates that at least 75% of its investors need to vote, a turnout slightly higher than the 70% achieved in January. Specific voting deadlines for shareholders using investment platforms like Fidelity, Hargreaves Lansdown, Interactive Investor, and AJ Bell are approaching rapidly, with some as early as April 24, 2026.
Critics like David Schachter from Gabelli Funds accuse Weinstein of hypocrisy, noting that Saba's own funds trade at significant discounts. He argues that Weinstein misrepresents his intentions and that only by turning out in large numbers can 'Mom and Pop' investors protect their portfolios from being hijacked for Saba's self-serving purposes.
