Baillie Gifford American Fund B Accumulation
New for 2019. Backs exceptional growth companies
An argument often levied against active funds investing in US equities is that the market is so efficient that it is difficult to outperform. Baillie Gifford American spectacularly disproves this notion.
It is the top performer in the North America sector over one and five years and second over three years, and takes a place in our Rated Funds this year on account of this remarkably consistent outperformance over the medium to long term.
The fund is hugely growth-oriented so investors must be prepared for setbacks in periods of market stress, as recently – its performance dropped to middle of the pack over the second half of 2018, when the US market was rocky.
Four managers from Baillie Gifford’s North American equities team are named on the £1.9 billion fund – Tom Slater, Gary Robinson, Helen Xiong and Kirsty Gibson. They are bottom-up, growth investors with a long investment horizon.
They believe they will maximise their chances to deliver outstanding investment performance by identifying the 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 stock price drivers.
When making an investment, they are not driven by short-term trends and take a five-year view. Annual portfolio turnover is correspondingly low at 12%.
The managers back their judgement, running a concentrated portfolio of 30 to 50 stocks. Their conviction means that the portfolio looks very different to the wider US stockmarket. The fund’s active share – a measure of the percentage of holdings that differs from the benchmark index – is 91% relative to the S&P 500.
Narrative and ratings content all as of January 2019.See all Money Observer rated funds
|Amazon.com Inc||9.04 %|
|Tesla Inc||6.59 %|
|Illumina Inc||5.18 %|
|Netflix Inc||4.85 %|
|MarketAxess Holdings Inc||4.65 %|
|Abiomed Inc||4.59 %|
|Alphabet Inc Class C||4.52 %|
|GrubHub Inc||4.40 %|
|Wayfair Inc Class A||3.91 %|
|Facebook Inc A||3.47 %|
|United States||97.77 %|
|Consumer Cyclical||27.32 %|
|Financial Services||16.20 %|
Kirsty has joined Baillie Gifford in 2012. Kirsty is an Investment Manager in the US Equities Team. She graduated MA (Hons) in Economics from the University of Edinburgh in 2011 and MSc in Carbon Management also from the University of Edinburgh in 2012, before joining Baillie Gifford in the same year. Kirsty began her career on the US Equities Team, before moving on to spend several years in small and large cap global equities departments, before returning to the US Equities Team. In addition to her role in the US Equities Team, She is also a member of the Positive Change Portfolio Construction Group.
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.
Helen graduated BSc (Hons) in Economics from Warwick University in 2007 and an MPhil in Economics from the University of Cambridge the following year. She joined Baillie Gifford in 2008 and has spent time working on our Developed Asia, UK, North America, Emerging Markets, and Global equity teams prior to becoming an investment manager in the US Equities team. Before coming to live and work in the UK, Helen has lived in China, South Africa, and Norway.
Gary is an investment manager in the US Equity Team. 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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