The investment trust is differentiated thanks to a focus on disruptive growth
Thursday 21 Jan 2021 Author: Tom Sieber

Baillie Gifford US Growth (USA) 335.92p

Gain to date: 135.7%
Original entry point: Buy at 142.5p, 8 August 2019

Undoubtedly the performance of Baillie Gifford US Growth (USA) has been helped by a strong showing for American equities but it has demonstrated an impressive ability to outperform.

As such we are sitting on a gain of more than 100% after flagging a positive view on the trust in August 2019.

The portfolio, which includes listed and unlisted US companies, recorded a share price and net asset value (NAV) return of 50.8% and 53.8% respectively in the six months to 30 November, well ahead of the 11.1% total return from its benchmark, the S&P 500.

Numis comments: ‘The fund is differentiated from its peers by a focus on disruptive growth stocks, and the ability to invest up to 50% of the portfolio in unquoted securities.’

Investec says traditional equity investors continue to face challenges in achieving exposure to a new generation of companies with superior growth characteristics that are choosing to stay unlisted for longer.

‘Meanwhile, many equity market incumbents are increasingly growth-challenged and/or overly indebted,’ it adds. ‘We believe that Baillie Gifford US Growth provides a highly effective and cost-effective solution to these challenges.’

SHARES SAYS: Still a long-term buy.

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