US activist investor Elliott Management takes 5% stake in Scottish Mortgage

Remembered for battle with Alliance Trust

US hedge fund and activist investor Elliott Investment Management has taken a 5% stake in investment trust giant Scottish Mortgage.

According to a stock exchange notice on Thursday (22 March), the firm bought close to 0.5% of the trust's shares, as well as an additional 4.57% in equity swaps, crossing the 5% threshold on 19 March. Based on Scottish Mortgage's closing price, Peel Hunt has estimated this represents a substantial exposure to SMT of around £607m. Elliott declined to comment.  A source familiar with the situation told Investment Week that the 5% stake in SMT makes Elliott the company's largest individual investor. The firm has been invested in Scottish Mortgage since last year and has engaged in privat...