International Smaller Companies

We are committed to finding the most exciting smaller companies in one of the deepest and least efficient segments of the market. Our task is to look for small, exceptional companies and invest in them with an ownership mindset.

We aim to outperform the benchmark (MSCI ACWI ex US Small Cap Index) by at least 3 per cent per annum over rolling five-year periods. 

We will invest in companies with a market capitalisation of $2bn or smaller, which we expect to deliver strong growth and we will sell once they reach $10bn. This allows enough room to foster significant long-term returns for our clients while sharing our insights on our most successful holdings with larger cap strategies as they exceed our size threshold.   

Great companies can be so for different reasons. Some want to shape and transform industries, others have skillsets to exploit emerging opportunities. Some operate at a superior level through distinctive culture or thoughtful stewardship.  

At the lower end of the market cap spectrum, many are often underappreciated or ignored by narrowly focused and short-term driven participants. This provides an excellent opportunity for Baillie Gifford, with its expertise in active management and belief in long-term investment, to create a truly differentiated strategy.