Capital at risk
US Discovery
The strategy builds on the longer-running Global Discovery Strategy but looks exclusively at the US – which we consider unmatched in its appeal.
Smaller businesses often utilise novel technologies or approaches to solve key problems. The companies we seek offer better and cheaper solutions than the status quo. They challenge today’s incumbents – shaping our future.
Ambitious companies solving today’s problems
We carry out in-depth research to unearth immature, disruptive companies. Once found, we want to hold them for the long term as they grow and scale. We mainly consider opportunities below $10bn market cap. However, at least 80 per cent of assets will be invested in companies with a market cap of $30bn or smaller.
Immaturity, not size, is the proxy for potential
The attraction of investing in smaller companies is the range of possible outcomes.
This can lead the strategy to display pronounced volatility, especially over the short- to medium-term. Yet investing early increases the possibility of a highly asymmetrical outcome. We aim to harness this to deliver overall strategy returns.
The strategy aims to outperform (net of fees) the Russell 2500 Growth Index, predominantly through capital appreciation, over rolling five-year periods.
Harnessing asymmetry to deliver long term
Our portfolio is constructed entirely from the bottom up, disregarding the benchmark. It has an extremely high active share and operates in a large investible universe. We position ourselves along the frontiers of innovation and technological development.
What unites the companies we invest in is immaturity. We define this as: innovating to solve significant problems and reshape an industry, emerging competitive edge, quality and ambition of management, and scalability.
This pursuit of immaturity is unique to US Discovery.
We established the Discovery Strategy to capture the opportunity in the enduring supercycle of innovation.
Meet the managers
Documents
Philosophy and process
Explore our investment philosophy and the processes around how the team constructs the portfolio.
Related insights
Explore further
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: 30 September 2024
| # | Holding | % of portfolio |
|---|---|---|
| 1 | Axon Enterprise | 7.66 |
| 2 | AeroVironment | 6.78 |
| 3 | TransMedics Group | 5.09 |
| 4 | Freshpet | 4.48 |
| 5 | Exact Sciences | 3.95 |
| 6 | Twist Bioscience | 3.64 |
| 7 | Varonis Systems | 3.59 |
| 8 | Novanta | 3.41 |
| 9 | Trupanion | 3.32 |
| 10 | Doximity | 2.98 |
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.
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Important information
By clicking on South Korea, you have confirmed that you are based in South Korea and that you meet the following requirements.
The information in this area of the website is intended for qualified professional investors and consultants based in South Korea. It is not intended for use by any other persons including members of the general public or investors from other jurisdictions.
Please remember that all investment strategies have the potential for profit and loss and your or your clients’ capital may be at risk.
Baillie Gifford Overseas Limited is wholly owned by Baillie Gifford & Co. Baillie Gifford Overseas Limited provides investment management and advisory services to non-UK clients. Both are authorised and regulated by the Financial Conduct Authority. Baillie Gifford Overseas Limited is licensed with the Financial Services Commission in South Korea as a cross border Discretionary Investment Manager and Non-Discretionary Investment Adviser.
Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 is wholly owned by Baillie Gifford Overseas Limited and holds a Type 1 licence from the Securities and Futures Commission of Hong Kong to market and distribute Baillie Gifford’s range of collective investment schemes to professional investors in Hong Kong.
Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 can be contacted at Suites 2713-2715, Two International Finance Centre, 8 Finance Street, Central, Hong Kong, Telephone +852 3756 5700.
The information provided does not constitute an offer of or solicitation for purchase or sale of securities or provision of any investment services. Any general enquiries regarding Baillie Gifford should be directed to the relevant individual as noted in the Contact Us section.
The information contained in this website has been compiled with considerable care to ensure its accuracy at the date of publication. However, no representation or warranty, express or implied, is made to its accuracy or completeness. Nothing in this information or elsewhere in this website shall exclude, limit or restrict our duties and liabilities to you under the United Kingdom's Financial Services and Markets Act 2000 or any conduct of business rules which we are bound to comply with.
This website is informative only and the information provided should not be considered as investment advice or a recommendation to buy, sell or hold a particular investment. Read our Legal and regulatory information for further details.