LONDON (Reuters) -Shareholders in Herald Investment Trust on Wednesday rejected a campaign by U.S. activist investor Saba Capital to overhaul its board, in a blow to founder Boaz Weinstein's wider push to shake-up the UK's 269 billion pound ($333 billion) trust sector.

The board of the Herald Investment Trust has claimed victory over Saba Capital after shareholders rejected the hedge fund's attempt to seize control of the company.

Saba Capital’s attempt to take control of seven UK investment trusts has stumbled at its first hurdle, as Herald shareholders vote down proposals

The hedge fund attempting to seize control of seven London-listed funds is hoping to win over Herald Investment Trust investors with the offer of a cash exit.