The Edinburgh Worldwide Investment Trust (EWIT) has generated a near 950% return on its long-held investment in Elon Musk’s Space Exploration Technologies, better known as SpaceX, underscoring one of the most successful private-market bets in its portfolio.
The investment has also become a focal point in a growing dispute with the trust’s largest shareholder, activist hedge fund Saba Capital.
A speculative bet that paid off
EWIT, a closed-end investment trust managed by Baillie Gifford, first invested in SpaceX in 2018.
At the time, the position was considered an early-stage and speculative bet, according to Jonathan Simpson-Dent, chair of the trust.
Much of the conviction came from EWIT’s portfolio management team, backed by what Simpson-Dent described as a “massively supportive” board.
The trust’s familiarity with Musk’s track record, particularly through its early investment in Tesla, played a key role in shaping confidence in SpaceX’s long-term potential.
Simpson-Dent said Tesla had generated “disproportionate returns” for EWIT shareholders over the past decade, helping reinforce the belief that SpaceX could follow a similarly transformational path.
As SpaceX expanded its launch capabilities and the Starlink satellite network gained traction across multiple end markets, EWIT continued to strengthen its position over several years.
In a recent update, the trust said its SpaceX holding has generated an absolute return of 947%, making it EWIT’s largest investment.
Portfolio discipline and trimming the position
SpaceX now accounts for around 16% of EWIT’s overall portfolio, which totals approximately £847.15 million ($1.14 billion) in assets.
The position is more than double the size of the trust’s next-largest holding.
Recently, EWIT trimmed its exposure to SpaceX, selling roughly one-third of its stake, while keeping it as the trust’s biggest investment.
Simpson-Dent said the decision was driven by portfolio discipline rather than a loss of conviction.
EWIT’s investment guidelines allow around 25% of the portfolio to be held in unlisted assets, a threshold that can naturally rise as valuations increase.
However, Simpson-Dent noted that when the unlisted portion grows closer to 30%, it reduces the flexibility to invest in other private companies.
Trimming the SpaceX stake was intended to manage concentration risk and preserve “dry powder” for future opportunities, while maintaining significant exposure to the business.
Activist pressure and boardroom tensions
The sale has intensified a long-running dispute between EWIT and Saba Capital, a New York-based hedge fund that holds roughly 30% of the trust.
Saba founder Boaz Weinstein publicly criticized the decision, questioning the price at which EWIT sold part of what he described as its “crown jewel,” amid speculation over SpaceX’s potential valuation.
Simpson-Dent explained that SpaceX periodically conducts employee tender offers, providing opportunities for shareholders like EWIT to reduce positions while remaining invested.
Despite this, Saba has accused EWIT of value destruction and has called for significant governance changes.
Saba has secured a general meeting scheduled for January 26, where it plans to propose removing EWIT’s current board and replacing it with three nominees of its own.
EWIT has urged shareholders to vote against the proposal, arguing that its approach balances long-term conviction with prudent risk management.
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