Capital at risk

Investment strategy

US Alpha

Growing businesses will dominate US Equities’ stock market returns over a decade. Some will grow rapidly, others quietly compound, and still more will progress in leaps and pauses. US Alpha celebrates this breadth of growth and patiently backs exceptional companies over a decade in the hope of generating extraordinary returns for our clients.

Winding empty road through arid desert landscape.

Seeking a breadth of growth

We don’t want to own one or two of any decade’s top outperformers. We want to hold them all. Focusing on growing businesses is the best way to drive returns, and it’s clear that not all such opportunities look the same.

We don’t follow the benchmark

‘More ways to win’ makes sense in a market as rich and deep as North America. We are inspired by diversity, and our broad approach gives us the best chance of finding the most exciting prospects in the US in whatever industry we find them while diversifying the drivers of risks. 

Our objective is to perform 2 per cent above the S&P 500 pa, over rolling five-year periods by investing in a broad range of exceptional growth businesses. We believe this to be a reasonable estimate of the amount by which we can outperform in the long term, considering the opportunity set and the many types of growth our companies exhibit.

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.

Disruptors, adaptors and pilots

We invest in three types of company. Where the market underestimates the growth of exceptional firms, we look for ‘disruptors’ with young cultures and inventive founders. Where duration is underappreciated, we look for ‘adaptors’ which know whether to preserve an asset or embrace change. And in turbulent industries we look for ‘pilots’, which put capital allocation above all else. The result is a portfolio with a low overlap with the index and low turnover which we are confident can deliver differentiated long-term results.

We celebrate the breadth of opportunity before us, embrace uncertainty and invest with optimism.
Michael Taylor

Meet the managers

Documents

Philosophy and process

Explore our investment philosophy and the processes around how the team constructs the portfolio.

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

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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 January 2024

#Holding% of portfolio
1NVIDIA4.3%
2Shopify3.6%
3Microsoft3.5%
4Alphabet2.4%
5Amazon.com2.0%
6Arista Networks2.0%
7Netflix2.0%
8Doordash2.0%
9Moderna1.9%
10AutoZone1.9%

Strategy holdings by sector

All figures up to: 31 January 2024

1Information Technology24.80%
2Consumer Discretionary20.50%
3Health Care14.50%
4Communication Services11.60%
5Financials9.10%
6Industrials8.60%
7Real Estate3.20%
8Consumer Staples2.80%
9Materials1.90%
10Energy0.40%
11Cash2.70%
Total 100%

Strategy holdings by sector

All figures up to: 31 January 2024

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).

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

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