Sessa Capital has lifted its position in Baillie Gifford US Growth (USA) to 7.7%, ramping up the challenge facing the investment trust’s board fighting for re-election at the annual general meeting on 23 October.

Sessa, a New York based hedge fund, earlier this month disclosed a 5% position in US Growth. It is thought to be supportive of Saba, the activist holding 29% that has put forward three non-independent nominees to replace the current independent board chaired by Tom Burnet.

On Monday afternoon, Burnet and senior independent director Sue Inglis (pictured) held a shareholder webinar as they sought to rally shareholders to the board’s defence for a third time, having seen off previous efforts by Saba to gain control in February and September last year.

Burnet reiterated his view that the vote was “existential” in that if Saba succeeded in electing its nominees, it would likely see the replacement of Baillie Gifford as fund manager and an end to the company’s distinctive strategy towards investing in the best US growth companies whether as private or public stocks.

“It’s effectively in a continuation vote. Do you want this vehicle available to you in the future as an investor? We like to think that you do,” Burnet said as he and Inglis urged shareholders to vote as soon as possible. Saba’s rejection of an offer by the board to buy its stake at 99.75% of asset value showed it was interested in gaining control not in retrieving its investment.

The election and dismissal of directors require simple majorities at the AGM to pass which is why the board need an exceptionally high turnout by shareholders to defeat the combined 36.7% held by Saba and Sessa. The investment trust has provided a guide to voting on its website.