Baillie Gifford American Fund B Accumulation
Rated Fund 2019-20. Backs exceptional growth companies
A criticism often levelled at active investing in US equity markets is that the market is so efficient that it is difficult to outperform. Baillie Gifford American, named Money Observer's Best North American Fund in 2018 and highly commended in 2019, spectacularly disproves this notion. It targets a modest annual return of 1.5% more than the S&P 500 over rolling five-year periods. Nevertheless, it is the top-performing fund in the sector over three and five years.
The fund is hugely growth-oriented, so investors must be prepared for setbacks in periods of market stress. It was one of the weakest among its peer group in the latter part of 2018, when the US market had a rocky ride, and struggled again during 2019, when its growth style suffered what appeared to be a short-term setback.
Four managers from Baillie Gifford's North America equities team are named on the £2.3 billion fund: Tom Slater, Gary Robinson, Helen Xiong and Kirsty Gibson. They are bottom-up investors with a long investment horizon. They believe they will maximise their chances of delivering outstanding investment performance by identifying exceptional growth businesses in the US and owning them for long enough that the advantages of their business models and cultural strengths become the dominant drivers of their stock prices. The managers run a concentrated portfolio of 30-50 stocks. Their conviction means the portfolio looks very different from the wider US stockmarket.
Narrative and ratings content all as of January 2020.See all Money Observer rated funds
|Shopify Inc A||9.12 %|
|Amazon.com Inc||8.72 %|
|Tesla Inc||7.10 %|
|MarketAxess Holdings Inc||5.74 %|
|Netflix Inc||5.52 %|
|Wayfair Inc Class A||4.64 %|
|The Trade Desk Inc A||4.05 %|
|Alphabet Inc Class C||4.02 %|
|Illumina Inc||3.53 %|
|Mastercard Inc A||3.44 %|
|United States||90.78 %|
|Consumer Cyclical||23.29 %|
|Communication Services||19.87 %|
|Financial Services||13.37 %|
Tom graduated BSc in Computer Science with Mathematics from the University of Edinburgh in 2000. He joined Baillie Gifford the same year and worked in the Developed Asia and UK Equity Teams before joining the Long Term Global Growth Team at the start of 2009. Tom became a Partner in the firm in 2012. Tom was appointed Joint Manager of Scottish Mortgage Investment Trust in January 2015 having served as Deputy Manager for the previous five years. In 2015 Tom was appointed Head of the North American Equities Team and is a decision maker on Long Term Global Growth portfolios. Tom’s investment interest is focused on high growth companies both in listed equity markets and as an investor in private companies.
Gary Robinson, CFA, Partner, Investment Manager, U.S. Equities Team at Baillie Gifford. He graduated MBiochem in Biochemistry from the University of Oxford in 2003 and joined Baillie Gifford the same year. He spent time working on our Japanese, UK and European equity teams before moving to the US Equities Team in 2008. Gary is a generalist investor but retains a special interest in the healthcare sector dating back to his undergraduate degree. Gary is a portfolio manager for our Global Select strategy.
Data provided by Morningstar.
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