Capital at risk

Investment strategy

Global Alpha

Our core task is the identification and patient, engaged ownership of companies with the potential to deliver superior but underappreciated earnings growth. We are flexible and open-minded in seeking these opportunities, aware of the ways growth can be achieved. Our research draws on the work and insights of the entire Baillie Gifford investment floor.

Woman paddleboarding on Sylvenstein lake, Germany.

Enduring growth

An ambitious approach to investing in growth companies with exceptional potential from right across the spectrum of opportunity. Our philosophy is to make long-term investments in well-managed businesses with sustainable competitive advantages. 

Global Alpha: our philosophy

Investment manager Helen Xiong introduces Global Alpha, reflecting on the exciting opportunities ahead.

High-quality companies with exceptional potential

We aim to identify companies that can grow their earnings at a superior rate to the market over sustained periods, with great potential that is not reflected in their price. As share prices are ultimately driven by earnings growth, this approach underpins our objective to deliver returns 2 per cent to 3 per cent per annum ahead of the benchmark over rolling five-year periods before the deduction of fees. The resulting portfolio of around 90 holdings represents the most attractive opportunities from across the growth spectrum at any point in time. 

The performance target is aspirational and is not guaranteed. We don’t use it to compile the portfolio and returns will vary. A single performance target may not be appropriate across all vehicles and jurisdictions. We may not meet our investment objectives if, for example, our growth investment style is out of favour or we misjudge the long-term earnings growth of our holdings.

Diversified and differentiated

We embrace the diversity of growth available to us, splitting the portfolio across our three growth profiles compounders, disruptors and capital allocators. The compounders profile looks to benefit from the underappreciated power of the long-term compounding of earnings. In disruptors, we seek to identify earlier-stage companies with the potential for major success. Capital allocators back skilled management teams, often in cyclical industries. 

At the heart of Global Alpha’s patient approach to long-term capital growth lies our belief in diversity. We don’t rely on a single definition of what ‘growth’ means.
Spencer Adair

Meet the managers

Documents

Philosophy and process

Explore our investment philosophy and the processes around how the Global Alpha team construct the portfolio through its three key growth profiles (compounders, disruptors and capital allocators).

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Quarterly update

Get the latest investment commentary, portfolio overview, transactions and performance information alongside governance engagement and voting. 

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Stewardship report

Find out about our conversations with portfolio companies, shareholder vote activity and consideration of environmental, social and governance matters.

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Global Alpha Research Agenda 2024

How can we invest in quality companies with the potential to generate sustainable returns in a changing market?

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You can invest in this strategy through the following fund(s).

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Curious to learn more about our products and what we can offer you? Please get in touch.

Strategy portfolio holdings

A list of the top 10 holdings that the representative portfolio invests in.

All figures up to: 31 December 2024

#CompanyFund %
1Amazon.com4.5%
2Microsoft4.3%
3Meta Platforms Inc4.2%
4NVIDIA4.1%
5TSMC3.3%
6Martin Marietta Materials3.1%
7Prosus N.V.3.0%
8Doordash Inc2.8%
9Elevance Health Inc2.4%
10Service Corp.Intl.2.3%

Strategy holdings by sector

All figures up to: 31 December 2024

Created with Highcharts 11.4.6Consumer DiscretionaryInformation TechnologyCommunication ServicesFinancialsIndustrialsHealth CareMaterialsReal EstateEnergyConsumer StaplesCash123456789101123.86%20.22%12.58%11.56%10.25%9.51%7.14%1.94%1.82%1.00%0.12%

Total: 100%

Strategy holdings by region

All figures up to: 31 December 2024

Created with Highcharts 11.4.6North AmericaEurope (ex UK)Emerging MarketsDeveloped Asia PacificUKCash12345664.84%16.67%12.64%5.33%0.40%0.12%

Total: 100%

Please note

The information contained on this page is intended as a guide only and should not be relied upon when making investment decisions. All holdings information is unaudited. Source Baillie Gifford & Co. Please note that totals may not add due to rounding.

Invest in this strategy

You can invest in this strategy through the following fund(s).

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Curious to learn more about our products and what we can offer you? Please get in touch.

Insights

Key articles, videos and podcasts relating to the strategy:

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Global Alpha Q4 update

The Global Alpha Team reflects on recent performance, portfolio changes and market developments.

  1. Nexans: Stock Story

    Lucy Haddow examines the sub-sea cable manufacturer crucial for the offshore wind and energy transition.
    March 2025
    Video3 minutes
  2. Atlas Copco: Stock Story

    Ben Drury explores how a culture of innovation and decentralisation drives success in industrial technology.
    March 2025
    Video3 minutes
  3. Moutai: Stock Story

    Ben Buckler investigates the Chinese brand dominating the global luxury drinks market.
    March 2025
    Video3 minutes
  4. Illustration of delivery cyclist with oversized leg muscles and passport stamps on his clothes

    DoorDash: delivering the goods

    How DoorDash’s ambitions extend far beyond restaurant deliveries.
    March 2025
    Article7 minutes
  5. Global Alpha Insights: investing in resilience beyond political cycles

    Why the Global Alpha Team believes elections don't impact stock market returns.
    January 2025
    Article3 minutes
  6. Global Alpha Q4 update

    The Global Alpha Team reflects on recent performance, portfolio changes and market developments.
    January 2025
    Video10 minutes
  7. Global Alpha Q4 investor letter

    The Global Alpha Team reflects on recent performance, portfolio changes and market developments.
    January 2025
    Article11 minutes
  8. A shepherd dog popping his head up from a sheep flock. Disguise, uniqueness and/or lost in the crowd concept

    Global Alpha insights: Rakuten and the 'Dog Shogun'

    Richie Vernon, investment specialist, explains why the Global Alpha Team has a different perspective on Rakuten's future market growth.
    October 2024
    Article4 minutes
  9. Global Alpha Q3 investor letter

    The Global Alpha Team reflects on recent performance, portfolio changes and market developments
    October 2024
    Article7 minutes
  10. Do elections matter for stock returns?

    What the past tells us about a new US president’s impact on growth companies.
    October 2024
    Article6 minutes
  11. Why growth investors can’t ignore China

    China’s electric car, battery and other advanced manufacturers are on the rise.
    October 2024
    Podcast26 minutes
  12. Global Alpha Q3 update

    The Global Alpha Team reflects on recent performance, portfolio changes and market developments.
    October 2024
    Video10 minutes
  13. Global Alpha insights: unlocking the magic of Disney

    Why the Global Alpha Team believes there is a magical journey ahead for Disney.
    September 2024
    Article4 minutes
  14. Investment specialist Ben James

    Future Stocks: Our best ideas in the US

    Ben James explains why DoorDash, The Trade Desk and CoStar stand out as growth stocks.
    September 2024
    Video3 minutes
  15. Eric Beinhocker: evolutionary economist

    How successful companies harness the power of adaptation.
    September 2024
    Article7 minutes

Invest in this strategy

You can invest in this strategy through the following fund(s).

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.

How to invest in this strategy

You can invest in this strategy through the following fund(s).

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.

Important information

The content of this website is intended exclusively for professional investors in accordance with MiFID legislation. ’Professional investors’ are potential investors who are deemed to have the status of “professional clients”, within the meaning of MiFID (2004/39/EC), as transposed in Ireland. It is not intended for retail investors.

Baillie Gifford Investment Management (Europe) Limited is authorised and regulated by the Central Bank of Ireland (Reference number C182354) as an Alternative Investment Fund Manager and UCITS Manager to Baillie Gifford Worldwide Funds plc. Its registered office is 4/5 School House Lane East, Dublin 2, D02 N279, Ireland.

This website is informative only and the information provided should not be considered as investment or other advice or a recommendation to buy, sell or hold a particular investment. Read our Legal and regulatory information for further details.