Capital at risk

Investment strategy

Europe ex UK

Europe has no shortage of fantastic businesses, it just takes a deeper look to find them. The Europe ex UK strategy does just that to construct high-conviction portfolios of 30 to 50 companies which we think have large growth opportunities. By investing in such companies, we hope to deliver long-term capital appreciation for our clients.

A view of three terraced houses by the canal side in Amsterdam.

Investing in the exceptional

We don’t want to own a collection of ‘slightly better than average’ companies. Instead, we aspire to own Europe’s ‘outliers’ – special companies which have the potential to return a multiple of our investment.

European equities: our philosophy

Investment manager Stephen Paice introduces European equities, reflecting on the exciting opportunities ahead.

Aiming to outperform

Our objective is to outperform the MSCI Europe ex UK index by 2-3 per cent per annum over rolling five-year periods. We believe the best way to meet this target is to find companies with the common characteristics that usually go along with great growth potential. These include being managed by exceptional capital allocators, as well as having the ability to grow revenues faster than peers, expand profit margins and possess sustainable competitive advantages.

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.

A chance to deliver with a difference

We do not construct our portfolios in relation to the benchmark, rather we construct our portfolios according to where we think the best opportunities are. As a result, we typically have a very high active share and look different to many of our peers. We also know that a small number of companies tend to drive market and portfolio returns, but patience is required to let compounding work its magic. We think this approach gives us the best chance to deliver on our performance objectives for clients.

For outstanding returns, you must invest in outstanding companies. Not all will work out. What’s important is not how often you are right, but how much you make when you are.
Stephen Paice

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. 

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Strategy portfolio holdings

A list of the top 10 holdings that the representative portfolio invests in.

All figures up to: 30 April 2024

#Holding% of portfolio
1Ryanair5.4%
2Topicus.com4.9%
3Schibsted4.7%
4ASML4.7%
5Prosus4.7%
6Atlas Copco4.2%
7Hypoport 3.7%
8Kingspan Group3.7%
9Avanza Bank3.4%
10Nexans3.3%

Strategy holdings by region

All figures up to: 30 April 2024

1Netherlands22.60%
2Sweden19.80%
3France12.50%
4Ireland9.00%
5Switzerland8.90%
6Germany7.00%
7Norway5.40%
8Italy4.70%
9Denmark4.40%
10Poland3.20%
11Others0.70%
12Cash1.80%
Total 100%

Strategy holdings by region

All figures up to: 30 April 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.

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Insights

Key articles, videos and podcasts relating to the strategy:

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Insights

Viewing 11 of 11
  1. European Equities Q1 update

    The European Equities Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video11 minutes
  2. Moncler: from mountain to street

    How the outerwear pioneer innovated its way into the fashion elite.
    March 2024
    Article4 minutes
  3. 왜 지금 성장인가?

    어려운 시기에 발휘되는 파트너십 지배구조의 강점: 급격한 변화 속에서 적응하고 성장할 수 있는 이유에 대해 분석합니다.
    2024년 3월
    Document17분
  4. European Equities Q4 update

    The European Equities Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video14 minutes
  5. HelloFresh: changing how people eat forever

    HelloFresh’s CEO explains the art and science of meal kit delivery at a global scale.
    December 2023
    Article
  6. 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
  7. European Equities Q3 update

    The European Equities Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video12 minutes
  8. European Equities

    Investment manager, Stephen Paice, discusses the Baillie Gifford approach to European Equities.
    September 2023
    Video3 minutes
  9. Europe: why now?

    Chris Davies is joined by Thomas Hodges to discuss why he sees reasons for optimism in European equities, and why he believes now is the time to start paying attention.
    October 2022
    Video34 minutes
  10. Why are Swedish companies world leaders?

    Sweden tops the charts for original thinking, from family businesses to founder-run companies.
    July 2022
    Podcast22 minutes
  11. Resurgence of European ambition

    Head of European Equities Stephen Paice explains why investors should evolve their mindsets in order to capture the growth opportunity in Europe.
    October 2021
    Video27 minutes

European Equities Q1 update

The European Equities Team reflects on recent performance, portfolio changes and market developments.

  1. European Equities Q1 update

    The European Equities Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video11 minutes
  2. Moncler: from mountain to street

    How the outerwear pioneer innovated its way into the fashion elite.
    March 2024
    Article4 minutes
  3. 왜 지금 성장인가?

    어려운 시기에 발휘되는 파트너십 지배구조의 강점: 급격한 변화 속에서 적응하고 성장할 수 있는 이유에 대해 분석합니다.
    2024년 3월
    Document17분
  4. European Equities Q4 update

    The European Equities Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video14 minutes
  5. HelloFresh: changing how people eat forever

    HelloFresh’s CEO explains the art and science of meal kit delivery at a global scale.
    December 2023
    Article
  6. 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
  7. European Equities Q3 update

    The European Equities Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video12 minutes
  8. European Equities

    Investment manager, Stephen Paice, discusses the Baillie Gifford approach to European Equities.
    September 2023
    Video3 minutes
  9. Europe: why now?

    Chris Davies is joined by Thomas Hodges to discuss why he sees reasons for optimism in European equities, and why he believes now is the time to start paying attention.
    October 2022
    Video34 minutes
  10. Why are Swedish companies world leaders?

    Sweden tops the charts for original thinking, from family businesses to founder-run companies.
    July 2022
    Podcast22 minutes
  11. Resurgence of European ambition

    Head of European Equities Stephen Paice explains why investors should evolve their mindsets in order to capture the growth opportunity in Europe.
    October 2021
    Video27 minutes

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.

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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.

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