Elliott Advisors is calling on FTSE 100 technology investor Scottish Mortgage Investment Trust (SMT) to lift the valuation of its portfolio by selling off chunks of its stocks, such as Elon Musk’s SpaceX.
It emerged last week that the feared US activist investor has built up a £600 million, 5 per cent stake in the Baillie Gifford-managed trust. Elliott claims it successfully lobbied management to unveil a £1 billion share buyback earlier this month.
It is understood that Elliott wants the trust to use buybacks to close the gap between its stock market value, which has fallen in recent years, and the book value of its investments.
SMT, which has a market value of £12 billion, holds stakes in listed tech firms such as Nvidia