Baillie Gifford American Fund B Accumulation

US Equities

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.  

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Name
Baillie Gifford American Fund B Accumulation
Manager
Baillie Gifford & Co Limited.
Type
Open Ended Investment Company
ISIN
GB0006061963
Sector
North America
Launched
28/03/2002
OCF
0.52 %
Risk Rating
5
3 Year Sharpe
0.96
3 Year Alpha
1.07
Yield
0 %
Benchmark
S&P 500 TR GBP
The objective is to produce capital growth over the long term. The Sub-fund will invest principally in equities of companies which are listed, quoted, traded, incorporated, domiciled or conducting a significant portion of their business in the United States of America. Such investment may be direct or indirect and the portfolio will be concentrated. The Sub-fund may also invest in other equities, cash and near cash. Up to (but no more than) 10% in value of the Sub-fund may be invested in each of the following: (1) collective investment schemes, including those managed or operated by the ACD and (2) deposits. The Sub-fund will be actively managed and investment may be made in any economic sector.
Holding %
Amazon.com Inc 8.20 %
Tesla Inc 6.53 %
Shopify Inc A 6.52 %
MarketAxess Holdings Inc 5.42 %
Netflix Inc 4.85 %
Alphabet Inc Class C 4.57 %
Mastercard Inc A 4.26 %
Illumina Inc 4.20 %
The Trade Desk Inc A 4.07 %
Wayfair Inc Class A 3.78 %
Region %
United States 93.38 %
Canada 6.62 %
Sector %
Consumer Cyclical 21.47 %
Communication Services 20.36 %
Technology 16.91 %
Healthcare 16.32 %
Financial Services 15.22 %
Name
Baillie Gifford & Co Limited.
Address
EH1 3AN, Edinburgh, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Kirsty Gibson
Joined 01/01/2018

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 Slater
Joined 01/04/2016

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 Xiong
Joined 05/01/2015

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 Robinson
Joined 05/01/2014

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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