Baillie Gifford Trust Backs Boaz Weinstein's SpaceX Proposal After Shareholder Defeat

A Baillie Gifford-managed investment trust has shifted its stance to support activist investor Boaz Weinstein, a move that follows a significant loss in a key shareholder vote. The trust, an early backer of SpaceX, now recommends a proposal put forward by Weinstein's Saba Capital Management, signaling a potential shift in influence and strategy at the fund.

The development centers on the Scottish Mortgage Investment Trust, a flagship fund from asset manager Baillie Gifford. Despite its historic and lucrative early investment in Elon Musk's SpaceX, the trust recently failed to secure sufficient shareholder support to renew its board's authority to issue new shares. This defeat appears to have created an opening for activist pressure. Saba Capital, which holds a stake in the trust, has been pushing for changes, including share buybacks, to address the trust's persistent discount to its net asset value.

The trust's decision to back Saba's proposal marks a notable win for Boaz Weinstein and intensifies scrutiny on Baillie Gifford's stewardship. It underscores the growing pressure on traditional asset managers from activist investors, particularly in the closed-end fund sector where performance and valuation gaps can become flashpoints. The outcome could influence the trust's future capital allocation and its relationship with long-standing holdings like SpaceX.