Capital at risk
US Equity Growth
The US is a wonderfully inefficient market. It’s also the global capital for growth firms.
We seek exceptional companies for long-term, concentrated growth. Diversification dilutes the best opportunities. Just 90 companies generated half of the US stock market’s $35tn in wealth creation over 90 years.
The downside is limited to the value invested, but the upside is open-ended.
We seek to harness the power of the outliers
We are in a period of unprecedented change and innovation. A small set of exceptional companies in the US is driving global change. This makes it an extremely exciting time to invest in high-growth US businesses.
US Equity Growth: our philosophy
Investment manager Tom Slater introduces US Equity Growth, reflecting on the exciting opportunities ahead.
Owning the exceptional for a long, long time
Our objective is to deliver more than 2 per cent above the market, either the Russell 1000 Growth Index or broader S&P 500 per anum, over rolling five-year periods, by investing in a concentrated portfolio of transformational growth companies.
We believe this to be a reasonable estimate of the amount by which we can outperform the market in the long term, considering the opportunity set and the unique cultures of the US companies we invest in.
We focus on a small number of companies that can drive returns over the next decade. This requires bravery and imagination. Obsessing over upside and unmatched patience is our edge.
Transformational innovation and disruption
We are investing in the future and aim to be on the right side of innovative disruption. The index, on the other hand, is backwards looking. That’s why our overlap with the market is low (typically less than 15 per cent).
The portfolio gives exposure to important structural changes in society that transcend short-term cycles, meaning it behaves differently from the index.
Innovation is at the heart of what we do. We seek out companies that are disrupting industries, creating new markets and changing the world for the better.
The opportunity to invest in truly innovative, disruptive companies is greater today than ever before, and the long-term growth potential of these companies is huge.
Meet the managers
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Strategy portfolio holdings
A list of the top 10 holdings that the representative portfolio invests in.
All figures up to: 31 December 2024
| # | Company | Fund % |
|---|---|---|
| 1 | Amazon.com | 8.1% |
| 2 | The Trade Desk | 8.1% |
| 3 | Shopify 'A' | 6.9% |
| 4 | Netflix Inc | 5.7% |
| 5 | Meta Platforms Inc | 5.6% |
| 6 | Doordash Inc | 5.2% |
| 7 | NVIDIA | 5.0% |
| 8 | Cloudflare Inc | 4.4% |
| 9 | Duolingo Inc | 3.3% |
| 10 | Tesla Inc | 3.3% |
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.
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You can invest in this strategy through the following fund(s).
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Insights
Key articles, videos and podcasts relating to the strategy:
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US Equity Growth Q4 update
The US Equity Growth Team reflects on recent performance, portfolio changes and market developments.
Why ants, scaffolding and long jumps matter to growth investors
Kirsty Gibson shares frameworks to analyse the cultures of exceptional growth businesses.
Joby Aviation readies for take-off
How a flying taxi firm could launch a transport revolution.
US perspectives: AI evolves again
Explore how the rapid market shift in AI and computer processing is transforming industries.
The concentration conundrum: challenge or opportunity?
In today’s era of US mega caps, is market concentration a challenge or an opportunity?
US Equity Growth Q4 update
The US Equity Growth Team reflects on recent performance, portfolio changes and market developments.
US Equity Growth Q4 investor letter
The US Equity Growth Team reflects on recent performance, portfolio changes and market developments.
Upfront: US equities
Gary Robinson on what a Trump presidency and AI opportunities could mean for growth investors.
US Equity Growth Q3 investor letter
The US Equity Growth Team reflects on recent performance, portfolio changes and market developments
Do elections matter for stock returns?
What the past tells us about a new US president’s impact on growth companies.
US Equity Growth Q3 update
The US Equity Growth Team reflects on recent performance, portfolio changes and market developments.
Eric Beinhocker: evolutionary economist
How successful companies harness the power of adaptation.
Why technical leaders have an advantage
How the leaders of Meta, Shopify, Roblox and Spotify’s expertise helps them put AI to use.
The rise of cloud computing
From data lakes to Databricks, cloud storage will be key to driving progress and future innovation.
US Equity Growth Q2 update
The US Equity Growth Team reflects on recent performance, portfolio changes and market developments.
US Equity Growth: investor letter Q2 2024
Investment specialist Fraser Thomson gives an update on the US Equity Growth Strategy covering Q2 2024.
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
Baillie Gifford Overseas Limited provides investment management and advisory services to non-UK clients and is authorised and regulated by the UK Financial Conduct Authority. Baillie Gifford Overseas Limited is not licensed under the Regulation of Investment Advising, Investment Marketing and Portfolio Management Law, 5755-1995 (the “Advice Law”) and does not carry insurance pursuant to the Advice Law.
Baillie Gifford Overseas Limited markets and distributes Baillie Gifford’s range of collective investment schemes to Qualified Clients and Qualified Investors in Israel, as listed in the First Addendum to the Regulation of Investment Advising, Investment Marketing and Portfolio Management Law, 5755-1995 (the “Advice Law”) and in the First Addendum to the Israel Securities Law, 5728-1968 (the “Securities Law”). Detailed disclosure of the collective investment schemes can be found within this website and in the relevant scheme prospectus.
Baillie Gifford Overseas Limited does not provide investment advice. If you are in any doubt about whether an investment is suitable, you should seek independent advice.
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