- Activist and value investors have ploughed into the investment trust sector in the last year
- Emerging markets and European growth trusts now targeted
When Elliott Investment Management cut its stake in Scottish Mortgage (SMT) below 5 per cent earlier this month, it's likely to have prompted a sigh of relief from the trust's board. Elliott has a record of pushing through changes at embattled investment trusts, including a bruising tussle with Alliance Trust (ATST) that ultimately led to the fund overhauling its approach around a decade ago. A diminished Elliott presence could mean Scottish Mortgage is under less pressure to change how it operates.
It’s not the only trust to experience relief, with activist Saba Capital having reduced its position in the embattled European Opportunities Trust (EOT). But activists maintain a significant presence in the space, something that could prompt more changes at funds and potentially even drive some gains for shareholders.