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US activist Saba Capital failed in its attempt to topple the board of Herald investment trust, dealing the first blow in its campaign against seven UK-listed closed-ended companies.

A majority of Herald shareholders voted on Wednesday against the US hedge fund’s proposal to replace the trust’s board and install its own candidates, potentially paving the way for Saba to become the investment manager.

More than 65 percent of the votes were against Saba’s plans, according to a market notice in the Herald. Except for Saba’s vote in favor, which amounted to nearly 35 percent, an additional 0.15 percent supported.

Andrew Joy, chair of the Herald Investment Trust, said the result represented “a clear, complete and indisputable rebuttal of Saba’s attempt to control your company and change its strategy against the wishes and interests of non-Saba shareholders”.

Joy said the shareholders invested in Herald because they want to support smaller technology companies in the long term, saying they “don’t want to be deprived of the opportunity to enjoy more of the same” and “no invest in Herald to be part of a short-term trading strategy”.

Saba, led by activist investors Boaz Weinsteinlast month called for shareholder meetings of seven investment trusts listed in London, claiming that their respective boards did not hold managers to account for poor performance.

The campaign marks one of the biggest shake-ups in the 150-year-old UK investment trust industry, which manages £266bn.

Saba’s defeat against the Herald’s board comes a day after the hedge fund agreed to stop its activist fight against 50 BlackRock funds in exchange for a soft offer of two of them.

A large part of the Herald’s shareholders are institutional investors such as wealth managers, with individuals accounting for less than a fifth of the register.

But the investment trust industry warns that individual investors, who account for a larger share of the other six trusts’ shareholder base, are less likely to participate in voting than institutions.

Jonathan Simpson-Dent, chair of Edinburgh Worldwide, another trust targeted by Saba, said “this is just the first battle in a war against seven trusts” and warned that “shareholders cannot be complacent”.

The UK financial regulator has contacted investment platforms to ensure that retail investors are aware of upcoming votes.

Saba’s stakes in each of the trusts range from about 19 to 29 per cent and are worth a total of £1.5bn.

Saba said in a statement that it “remains committed to putting the interests of shareholders first, delivering returns for UK trust investors and ultimately healing this damaged sector.”

It added: “We urge the shareholders of the six other trusts where we have requested general meetings to support Saba’s resolutions to put these trusts on the path to meaningful value creation.”