Baillie Gifford US Growth Trust: Manager Insights

Your capital is at risk. Past performance is not a guide to future returns.

Kirsty Gibson: Since Baillie Gifford US Growth Trust launched in March 2018, we have endured a global pandemic, war-sparked supply shocks, and, most recently, the re-election of an uncommonly unpredictable US president.

These once-in-a-generation events can tempt investors to cling to yesterday’s certainties. However, if the past few years have taught us anything, what matters is not the structure you can see but the foundation beneath. When the ground keeps shifting, the best architects focus on the foundations before building above.

Performance:

While our five-year number remains distorted by the extreme volatility through Covid, we are satisfied to have matched a period of strong growth from the index since inception and are pleased to share the strength of our shorter-term numbers.

As long-term investors, we anchor our approach on patience through volatility, conviction-led investing, and a relentless focus on growth. While identifying tomorrow’s exceptional companies is challenging, the real test is holding on to them through inevitable setbacks. History confirms that – even the greatest investments – success rarely unfolds smoothly.

Culture and builders:

The same lesson governs our handling of today’s headlines. President Trump’s second-term trade volleys and tariff threats move markets week by week, yet predicting his next tweet is not our edge. Instead, we must double down on the things we believe we have an edge in analysing, and the forces whose trajectories remain largely price indifferent. Like the structural drivers of lasting growth – declining battery costs underpinning electric vehicles or falling inference costs fuelling artificial intelligence (AI). Or the resilience and adaptability of the companies we invest in. Resilience to navigate the short term and adaptability to thrive in the long run.

Yet, tailwinds and resilience alone are insufficient. The true differentiator underpinning adaptability and sustained long-term growth is a company’s culture. Ask any structural engineer: steel reinforcement makes concrete resilient and permits daring shapes. Inside companies, culture plays the same role, supporting them in building on their opportunities. 

Consequently, CEOs and founders are builders. Builders, with a clear vision of what they are creating and a strong cultural foundation that provides the scaffolding for everything they build above. 

A clear culture creates alignment, enabling companies to embrace those moments of transition and thrive in an ever-evolving environment. 

And this feels like a transition moment. We have had the emergence of generative AI, the re-election of Donald Trump, and companies steadying the ship post-Covid. But with fundamentals on a more even keel, we are seeing many companies reorient to focus on growth. This is the sort of environment where builders really come into their own.

Progress at work:

DoorDash, with its mission to “grow and empower local economies”, is stepping beyond its traditional restaurant delivery model and looking to rewire local commerce end-to-end. The company is pushing into high-frequency, non-restaurant baskets that deepen driver-density economics. The company’s logistics know-how stays constant; the market opportunity multiplies.

Stripe’s acquisition of Bridge in February 2025 folds stablecoin rails into its payments stack, slashing costs for cross-border transfers—especially from the global north to the global south. The move extends Stripe’s foundational purpose (“grow the GDP of the internet”) into a parallel, programmable money system.

Duolingo’s cultural north star is language access for all. With Duolingo Max, subscribers practise free-form dialogue with Lily, an AI persona offering personalised feedback - an experience edging ever closer to a human tutor at dramatically lower cost. The addressable learner pool - and lifetime value - expands with each improvement.

More broadly, AI is reshaping industries and driving tangible changes across the economy, with growing evidence underscoring the materiality of this transformation. Companies across various sectors are increasingly highlighting significant productivity gains attributable to AI. 

We recognise that there is not a single optimal way to capture AI's potential in the Company’s portfolio. Instead, we have investments across the different layers of the AI stack – from infrastructure and edge compute to data management and applications built upon existing infrastructure.

Backing builders through uncertainty:

Generative AI’s emergence and President Trump’s tariff whiplash can make people feel uncomfortable and foster fear, but it is in these moments that builders thrive.

Because, in the end, America’s greatness is not gifted by any administration; it is built – brick by stubborn brick – by founders and teams who see the city not as it is, but as it ought to be. Our job is to support the crane arm so that it can keep moving, regardless of who is in power. 

For us, that is the American dream made real.

Source: Morningstar, S&P. Total return in sterling.

Past performance is not a guide to future returns.

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Important information

This communication was produced and approved in September 2025 and has not been updated subsequently. It represents views held at the time of writing and may not reflect current thinking.

This communication should not be considered as advice or a recommendation to buy, sell or hold a particular investment. This communication contains information on investments which does not constitute independent investment research. Accordingly, it is not subject to the protections afforded to independent research and Baillie Gifford and its staff may have dealt in the investments concerned.

The investment trusts managed by Baillie Gifford & Co Limited are listed UK companies and are not authorised or regulated by the Financial Conduct Authority. The value of their shares, and any income from them, can fall as well as rise and investors may not get back the amount invested.

Baillie Gifford & Co and Baillie Gifford & Co Limited is authorised and regulated by the Financial Conduct Authority (FCA).

The Trust invests in overseas securities. Changes in the rates of exchange may also cause the value of your investment (and any income it may pay) to go down or up.

Unlisted investments such as private companies, in which the Trust has a significant investment, can increase risk. These assets may be more difficult to sell, so changes in their prices may be greater.

Further details of the risks associated with investing in the Trust, including a Key Information Document and how charges are applied, can be found in the Trust specific pages at www.bailliegifford.com, or by calling Baillie Gifford on 0800 917 2112.