Gore Street Energy survives Saba wind-down vote

Gore Street Energy Storage has retained its status as an investment company after shareholders narrowly rejected a proposal by activist hedge fund Saba Capital to wind down the vehicle. The resolution failed to secure a majority at the annual general meeting held on Wednesday, allowing the battery fund to continue its operations despite significant opposition from investors. The outcome marks a temporary reprieve for the board, which now faces pressure to demonstrate improved performance and engage more effectively with its shareholder base.

Saba Capital, which holds an approximately 18 per cent stake in the fund, put forward two resolutions aimed at discontinuing the company. The first resolution, which sought to prevent Gore Street Energy Storage from continuing as an investment company, received 44.03 per cent of the votes in favour. A second resolution, proposing that the directors subsequently initiate the winding up or liquidation of the firm, also fell short of the required threshold, garnering 44.25 per cent of the support. Although both proposals were defeated, the level of support indicated that a substantial portion of the shareholder base remains dissatisfied with the fund’s current trajectory and management approach.

In response to the vote, the board pledged to engage with shareholders to establish a productive path forward and deliver enhanced value. A spokesperson for the fund stated that the board would discuss shareholder views and report on actions taken to further engagement. Non-executive chair Angus Gordon Lennox also survived a challenge to his position, securing re-election with 55.3 per cent of the votes. James Carthew, head of investment company research at Quoted Data, noted that the result provides the company with breathing space to progress plans to enhance returns, while cautioning that shareholder patience is limited.

The fund has faced mounting frustration due to prolonged underperformance, with its share price falling 13.8 per cent over the last twelve months to 47.3p per share. Over the past five years, the stock has declined by nearly 60 per cent. Compounding these issues, Gore Street Energy Storage recently halted the sale of its German assets after a prospective buyer lowered its offer. The fund attributed the price reduction to Saba’s pending resolutions, a claim Saba disputed by arguing that a buyer in a competitive process would not materially cut its price due to a shareholder vote.

This contest represents the latest in a series of aggressive campaigns by Saba Capital against London-listed trusts. In April, the hedge fund successfully forced the board of Edinburgh Worldwide Investment Trust to concede, ending a 17-month battle and replacing the chair and board members. More recently, Saba launched a new campaign against the US Growth Trust, a Baillie Gifford vehicle, proposing three candidates for board roles ahead of its general meeting. This marks the third attempt by Saba to influence the US Growth Trust in less than two years, following two previous rebuffs since the start of 2025.