Gore Street Energy narrowly defeats Saba’s wind down vote
Gore Street Energy Fund has survived an attempt by activist hedge fund Saba Capital to wind it down at its latest annual general meeting, after investors narrowly voted against its discontinuation.
The battery fund quashed the Boaz Weinstein-run fund’s efforts to shut it down at its annual general meeting (AGM) on Wednesday, but more than 44 per cent of votes were cast in favour of winding it down.
Saba’s resolution that Gore Street Energy Storage (GSF) not continue as an investment company received 44.03 per cent of votes in favour.
The second resolution put forward, that the directors subsequently propose the firm’s winding up or liquidation, also fell short with 44.25 per cent of the votes.
The support for Saba’s resolutions prompted the fund’s board to pledge to “engage and establish a productive way forward” with shareholders in order to deliver “enhanced value”.
A GSF spokesperson said: “The Board will therefore engage with shareholders to discuss any views they may have…and will report on the actions it has taken to further engage with shareholders.”
Saba Capital holds roughly an 18 per cent stake in the fund.
Saba’s attempt to force a wind-down marks its latest assault on London-listed trusts.
Shareholder frustration
Non-executive chair Angus Gordon Lennox also scarcely avoided being ousted from his position, clinging on with 55.3 per cent of votes for his re-election.
James Carthew, head of investment company research at Quoted Data, said the outcome allows the company some “breathing space” to progress with plans to enhance returns, but warned shareholders will be impatient.
“As a shareholder, I am very pleased to see that Saba’s attempt to force a potentially value-destructive wind up on Gore Street Energy Storage has failed,” said Carthew.
“However, it must remember that our patience is not inexhaustible.”
Shareholders have become frustrated by the fund’s prolonged underperformance, with its stock tumbling 13.8 per cent over the last twelve months to 47.3p per share.
It has plunged nearly 60 per cent in the last five years.
Last week, GSF also halted the sale of its German assets, after the prospective buyer lowered its offer. The fund argued the reduction did not reflect market conditions, instead blaming Saba’s AGM resolutions.
In response, Saba said: “Shareholders are being asked to believe that a buyer in a competitive process, for an asset the board says is trading well, has materially cut its price because of a pending shareholder vote.”
Saba’s relentless attacks
Saba’s attempt to wind-down GSF is the latest in a string of efforts by the hedge fund in the last two years to take over or shut down struggling investment trusts.
In April, Edinburgh Worldwide Investment Trust (EWIT) conceded defeat to Saba, bringing its 17-month long battle to an end.
It succeeded in ousting EWIT’s board and chair Johnathan Simpson-Dent for its own three nominees.
Recently, the fund launched a fresh assault on one of Baillie Gifford’s largest investment trusts, once more proposing three candidates for the vehicle’s board.
The fund put forward a trio of executives for shareholders to consider for board roles at the US Growth Trust (USGT) ahead of its general meeting later this year.
The proposal was Saba’s third move against the trust in less than two years, having had two other attempts rebuffed since the start of 2025.