Gore Street Energy Fund has defeated an attempt by activist hedge fund Saba Capital to wind it down. At its annual general meeting on Wednesday, investors narrowly voted against the discontinuation of the battery fund.
Despite the outcome, 44.03 per cent of votes supported Saba's resolution for Gore Street Energy Storage (GSF) not to continue as an investment company. A second resolution, proposing the firm's winding up or liquidation, also received 44.25 per cent of votes in favour.
The level of support for Saba's resolutions has led the fund's board to commit to engaging with shareholders to deliver "enhanced value." A GSF spokesperson stated that the board will discuss views with shareholders and report on actions taken.
Saba Capital, which holds around an 18 per cent stake in GSF, has made this attempt as part of its ongoing efforts targeting London-listed trusts. Shareholders have expressed frustration over GSF's prolonged underperformance, with its stock dropping 13.8 per cent in the past year and nearly 60 per cent over five years.
Non-executive chair Angus Gordon Lennox also narrowly retained his position, with 55.3 per cent of votes cast for his re-election. James Carthew, head of investment company research at Quoted Data, noted that the result offers the company "breathing space" but cautioned that shareholders' patience is not limitless.