Saba has lost in its latest battle to oust the board of a Baillie Gifford investment trust. 

Shareholders in Baillie Gifford US Growth (USA ) voted decisively against the US activist’s proposals to replace the current directors with Saba boss Boaz Weinstein and another nominee. 

On an around 78% turnout, 65.6% of votes, or just under two thirds, went against Saba’s proposals. 

Given Saba’s near 30% stake in the Baillie Gifford US equity trust, the Edinburgh firm had been concerned about whether enough retail shareholders would vote to see off Saba. 

The results announcement by the trust’s board this afternoon said, excluding Saba’s votes, that 98.5% of votes were cast against the US hedge fund firm. 

Baillie Gifford stablemate Keystone Positive Change (KPC ) is still to announce the result of its own vote this afternoon. 

The two trusts are among seven being targeted by New York-based Saba, which built up big stakes before requisitioning general meetings shortly before Christmas, accusing the existing boards and managers of presiding over poor performance and wide discounts. 

If eventually successful in replacing the boards, Saba’s plan is to offer shareholders some kind of cash-out before likely appointing itself as manager and turning the trusts into vehicles to attack other discounted closed-end funds. 

A fortnight ago, Saba lost the such first vote against Herald (HRI ) by a wide margin, despite its near 30% stake. 

More to follow