Capital at risk

Investment strategy

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. 

A colourful semi cicle of neon lights with lines of blue dots flaring out from the centre.

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.

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.

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.
Tom Slater

Meet the managers

Documents

Philosophy and process

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

Quarterly update

Get the latest investment commentary, portfolio overview, transactions and performance information alongside governance engagement and voting. 

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: 31 March 2024

#CompanyFund %
1Shopify 'A'8.4%
2Amazon.com8.3%
3The Trade Desk7.8%
4NVIDIA7.6%
5Meta Platforms Inc5.4%
6Doordash Inc4.8%
7Netflix Inc4.8%
8Cloudflare Inc3.8%
9Tesla Inc3.6%
10Moderna Inc3.6%

Strategy holdings by sector

All figures up to: 31 March 2024

1Information Technology30.30%
2Consumer Discretionary25.75%
3Communication Services22.92%
4Health Care12.14%
5Real Estate2.78%
6Industrials2.31%
7Financials2.05%
8Consumer Staples0.69%
9Materials0.25%
10Cash0.81%
Total 100%

Strategy holdings by sector

All figures up to: 31 March 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.

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.

Insights

Key articles, videos and podcasts relating to the strategy:

US Equity Growth Q1 update

The US Equity Growth Team reflects on recent performance, portfolio changes and market developments.

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Insights

Viewing 17 of 17
  1. US Equity Growth Q1 update

    The US Equity Growth Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video12 minutes
  2. The Long View

    Introducing The Long View, articles by our US Equities Team exploring what matters most to optimistic, long-term investors.
    January 2024
    External link
  3. Moderna: designing drugs on a computer

    Can scientists meet unmet health needs by writing code to help the body heal itself?
    January 2024
    Article4 minutes
  4. US Equity Growth Q4 update

    The US Equity Growth Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video15 minutes
  5. Why growth, why now?

    Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
    December 2023
    Article17 minutes
  6. US Equity Growth Q3 update

    The US Equity Growth Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video14 minutes
  7. US Equity Growth Strategy

    Investment manager, Tom Slater, discusses the Baillie Gifford US Equity Growth Strategy.
    September 2023
    Video3 minutes
  8. US Equity Growth Q2 update

    The US Equity Growth team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video14 minutes
  9. US Equities Q1 update

    US Equities Team reflects on recent performance, portfolio changes, and market developments.
    April 2023
    Video16 minutes
  10. What’s next for growth stocks?

    Baillie Gifford’s Dave Bujnowski explores the new engines powering progress.
    January 2023
    Podcast23 minutes
  11. Why 'what if...' is the most vital question for investors

    Today’s outsized growth rarely follows a steady or predictable path, according to Kirsty Gibson of Baillie Gifford’s US Equities Team.
    October 2022
    Podcast16 minutes
  12. Defining impact

    The US Equities team discuss ESG and effective growth investing.
    September 2022
    Article
  13. The long view

    The enduring power of Moore’s Law and other factors that might matter in the next decade of investing.
    May 2022
    External linkLong read
  14. US Equity Growth Webinar: The Long View

    Join Investment Managers Tom Slater, Gary Robinson, Kirsty Gibson and Dave Bujnowski as they share their thoughts on the investment environment, explain why they believe there is scope for upside from here, and discuss their search for transformational growth companies.
    May 2022
    Video47 minutes
  15. US Equities: manager insights

    Gary Robinson, investment manager at Baillie Gifford, responds to questions on inflation and valuation.
    February 2022
    Video11 minutes
  16. A conversation about sustainability

    Our long-term investors know that investing sustainably is a plus for value creation.
    October 2021
    Article
  17. How harnessing chaos can make companies more nimble

    Chaos is often associated with a failure of leadership. Gary Robinson, partner in the US Equities Team, argues that the best bosses don’t resist disorder but channel it to create ‘chaordic organisations’ in which innovation thrives.
    July 2021
    Video17 minutes

  1. US Equity Growth Q1 update

    The US Equity Growth Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video12 minutes
  2. The Long View

    Introducing The Long View, articles by our US Equities Team exploring what matters most to optimistic, long-term investors.
    January 2024
    External link
  3. Moderna: designing drugs on a computer

    Can scientists meet unmet health needs by writing code to help the body heal itself?
    January 2024
    Article4 minutes
  4. US Equity Growth Q4 update

    The US Equity Growth Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video15 minutes
  5. Why growth, why now?

    Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
    December 2023
    Article17 minutes
  6. US Equity Growth Q3 update

    The US Equity Growth Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video14 minutes
  7. US Equity Growth Strategy

    Investment manager, Tom Slater, discusses the Baillie Gifford US Equity Growth Strategy.
    September 2023
    Video3 minutes
  8. US Equity Growth Q2 update

    The US Equity Growth team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video14 minutes
  9. US Equities Q1 update

    US Equities Team reflects on recent performance, portfolio changes, and market developments.
    April 2023
    Video16 minutes
  10. What’s next for growth stocks?

    Baillie Gifford’s Dave Bujnowski explores the new engines powering progress.
    January 2023
    Podcast23 minutes
  11. Why 'what if...' is the most vital question for investors

    Today’s outsized growth rarely follows a steady or predictable path, according to Kirsty Gibson of Baillie Gifford’s US Equities Team.
    October 2022
    Podcast16 minutes
  12. Defining impact

    The US Equities team discuss ESG and effective growth investing.
    September 2022
    Article
  13. The long view

    The enduring power of Moore’s Law and other factors that might matter in the next decade of investing.
    May 2022
    External linkLong read
  14. US Equity Growth Webinar: The Long View

    Join Investment Managers Tom Slater, Gary Robinson, Kirsty Gibson and Dave Bujnowski as they share their thoughts on the investment environment, explain why they believe there is scope for upside from here, and discuss their search for transformational growth companies.
    May 2022
    Video47 minutes
  15. US Equities: manager insights

    Gary Robinson, investment manager at Baillie Gifford, responds to questions on inflation and valuation.
    February 2022
    Video11 minutes
  16. A conversation about sustainability

    Our long-term investors know that investing sustainably is a plus for value creation.
    October 2021
    Article
  17. How harnessing chaos can make companies more nimble

    Chaos is often associated with a failure of leadership. Gary Robinson, partner in the US Equities Team, argues that the best bosses don’t resist disorder but channel it to create ‘chaordic organisations’ in which innovation thrives.
    July 2021
    Video17 minutes

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.