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Investment strategy

International Concentrated Growth

International Concentrated Growth is a bottom-up equity strategy focused on outstanding growth firms. It invests in businesses making structural changes to the economy and society.

The Kelpies sculptures in Falkirk, Scotland in the evening.

Powerful potential

This is a concentrated portfolio of exceptional international growth companies, which are driving transformation in societies and economies and therefore have the potential to take substantial market share. 

International Concentrated Growth: manager introductions

Radical companies may seem risky, but they’re building the future. Paulina McPadden, Spencer Adair and Lawrence Burns discuss how investing in firms with extraordinary potential is a simple approach to long-term wealth creation.

Unique, concentrated, long term

ICG has three advantages. First, it has exceptionally long holding periods. Second, it is centred on the asymmetry of stock returns and the investment case upside. Third, it is concentrated and willing to take large holdings when justified by the probability-weighted returns available.  

The strategy aims to grow clients’ assets over a five to 10-year horizon by investing in growth companies driving change. Our goal is to exceed the MSCI ACWI ex US Index by at least 3 per cent per annum over rolling five-year periods. Our approach to portfolio construction is purely stock-driven without reference to any benchmark. 

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.

Years, not quarters

Long-termism is central to our philosophy. A company’s value is rarely determined over a few quarters. 

We’re interested in companies that may grow significantly over five to 10 years, in structural or even explosive ways. These are rare, so we adopt a concentrated portfolio of 20-35 stocks from developed and emerging markets. 

We believe it’s important not to ignore companies that may significantly disrupt international markets, despite being based in the US. The strategy can therefore invest up to 15 per cent in the US.

We each bring our passions and interests to the team. What links us together is a commitment to investing in companies that are driving deep structural changes in the economy.
Paulina McPadden

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: 31 March 2024

#Holding% of portfolio
1MercadoLibre11.55
2ASML11.15
3NVIDIA9.00
4Spotify7.59
5Adyen6.32
6Ferrari4.53
7Hermès International4.48
8Meituan3.80
9Moderna3.28
10Kering2.99

Strategy holdings by sector

All figures up to: 31 May 2024

1Consumer Discretionary40.44%
2Information Technology24.33%
3Communication Services11.19%
4Health Care8.63%
5Financials8.01%
6Consumer Staples4.22%
7Industrials2.03%
8Cash1.04%
9Materials0.11%
Total 100%

Strategy holdings by sector

All figures up to: 31 May 2024

Total: 100%

Strategy holdings by region

All figures up to: 31 May 2024

1Europe (ex UK)49.83%
2Emerging Markets28.07%
3North America16.55%
4UK3.81%
5Cash1.04%
6Developed Asia Pacific0.70%
Total 100%

Strategy holdings by region

All figures up to: 31 May 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:

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Insights

Viewing 17 of 17
  1. Stock story: MercadoLibre

    The company on a mission to democratise ecommerce and finance for 650 million people.
    May 2024
    Video3 minutes
  2. Tilting the odds in your favour

    The Magnificent Seven’s reputation goes before them but that’s not enough to save them.
    April 2024
    Article8 minutes
  3. A red Ferarri against a vibrant orange and yellow sunset sky

    Ferrari: racing through time

    How a car manufacturer turned luxury icon can continue to outpace the competition.
    April 2024
    Article5 minutes
  4. International Concentrated Growth Q1 update

    The International Concentrated Growth Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video10 minutes
  5. AI: intelligence everywhere

    Why AI could be the printing press of intelligence.
    March 2024
    Article4 minutes
  6. 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
  7. International Concentrated Growth Q4 update

    The International Concentrated Growth Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video11 minutes
  8. Ferrari: Magic from Maranello

    How has Ferrari grown to be a $78 billion company when it only sells 13,000 cars a year? After investing in the iconic company for many years, investment manager Brian Lum joined the Business Breakdowns podcast to unpack the business behind the brand.
    December 2023
    External link60 minutes
  9. 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
  10. International Concentrated Growth Q3 update

    The International Concentrated Growth Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video11 minutes
  11. Change as a growth driver

    We live in changing times. And that will create opportunities for long-term growth investors.
    August 2023
    Article
  12. Genmab and the future of cancer therapy

    The Denmark-based pharmaceutical company breaking new ground in antibody design.
    July 2023
    Article
  13. International Concentrated Growth Q2 update

    The International Concentrated Growth team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video8 minutes
  14. Adyen: pioneer of payments

    The Dutch firm making everyday payments fast and friction-free.
    April 2023
    Article
  15. International Concentrated Growth Q1 update

    International Concentrated Growth Team reflects on recent performance, portfolio changes, and market developments.
    April 2023
    Video10 minutes
  16. International Concentrated Growth: manager introductions

    Radical companies may seem risky, but they’re building the future. Paulina McPadden, Spencer Adair and Lawrence Burns discuss how investing in firms with extraordinary potential is a simple approach to long-term wealth creation.
    May 2022
    Video7 minutes
  17. The pursuit of extreme returns

    The story of investing is really the story of the big winners, those exceptional companies that reshape our world and in the process reap the rewards. Lawrence Burns sets out how a long-term and patient approach to investment is necessary to identify those truly great companies that could drive extreme returns.
    February 2018
    Document

International Concentrated Growth Q1 update

The International Concentrated Growth Team reflects on recent performance, portfolio changes and market developments.

  1. Stock story: MercadoLibre

    The company on a mission to democratise ecommerce and finance for 650 million people.
    May 2024
    Video3 minutes
  2. Tilting the odds in your favour

    The Magnificent Seven’s reputation goes before them but that’s not enough to save them.
    April 2024
    Article8 minutes
  3. A red Ferarri against a vibrant orange and yellow sunset sky

    Ferrari: racing through time

    How a car manufacturer turned luxury icon can continue to outpace the competition.
    April 2024
    Article5 minutes
  4. International Concentrated Growth Q1 update

    The International Concentrated Growth Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video10 minutes
  5. AI: intelligence everywhere

    Why AI could be the printing press of intelligence.
    March 2024
    Article4 minutes
  6. 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
  7. International Concentrated Growth Q4 update

    The International Concentrated Growth Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video11 minutes
  8. Ferrari: Magic from Maranello

    How has Ferrari grown to be a $78 billion company when it only sells 13,000 cars a year? After investing in the iconic company for many years, investment manager Brian Lum joined the Business Breakdowns podcast to unpack the business behind the brand.
    December 2023
    External link60 minutes
  9. 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
  10. International Concentrated Growth Q3 update

    The International Concentrated Growth Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video11 minutes
  11. Change as a growth driver

    We live in changing times. And that will create opportunities for long-term growth investors.
    August 2023
    Article
  12. Genmab and the future of cancer therapy

    The Denmark-based pharmaceutical company breaking new ground in antibody design.
    July 2023
    Article
  13. International Concentrated Growth Q2 update

    The International Concentrated Growth team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video8 minutes
  14. Adyen: pioneer of payments

    The Dutch firm making everyday payments fast and friction-free.
    April 2023
    Article
  15. International Concentrated Growth Q1 update

    International Concentrated Growth Team reflects on recent performance, portfolio changes, and market developments.
    April 2023
    Video10 minutes
  16. International Concentrated Growth: manager introductions

    Radical companies may seem risky, but they’re building the future. Paulina McPadden, Spencer Adair and Lawrence Burns discuss how investing in firms with extraordinary potential is a simple approach to long-term wealth creation.
    May 2022
    Video7 minutes
  17. The pursuit of extreme returns

    The story of investing is really the story of the big winners, those exceptional companies that reshape our world and in the process reap the rewards. Lawrence Burns sets out how a long-term and patient approach to investment is necessary to identify those truly great companies that could drive extreme returns.
    February 2018
    Document

Explore further

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