Capital at risk

Investment strategy

Pan Europe

Europe has no shortage of fantastic companies; it just takes a deeper look to find them.  

These companies can typically grow revenues faster than peers, expand their profit margins, have sustainable competitive advantages and are managed by exceptional capital allocators. By investing in them, we hope to deliver long-term capital appreciation for our clients. 

Electronics workers in clean room assembling electronic components.

Europe’s most exciting companies

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

Investment manager, Stephen Paice, discusses the Baillie Gifford approach to European Equities.

Searching for the best opportunities

Our objective is to outperform the MSCI Europe ex UK index by 2 to 3 per cent per annum over rolling five-year periods. We construct our portfolios according to where we think the best opportunities are, looking for the European outliers that we believe have significant potential. 

We are focused on investing for the long-term. All our thinking about stocks is based on what we think might happen over the next 5-10 years because outsized returns generally don’t happen overnight.

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.

Standing out from the crowd

We do not construct our portfolios in relation to the benchmark. As a result, we typically have a very high active share and look different to many of our peers. We think this gives us the best chance to deliver on our performance objectives for clients. 

We construct portfolios of 30-50 companies that we think have large growth opportunities. 

We know that a small number of companies tend to drive market and portfolio returns, but you have to be patient for compounding to work its magic.
Chris Davies

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

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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 January 2024

#Holding% of portfolio
1Schibsted4.3%
2Prosus4.2%
3Ryanair3.8%
4Spotify3.6%
5Games Workshop3.6%
6Topicus.com3.5%
7ASML3.4%
8Atlas Copco3.3%
9Reply Spa3.1%
10Dassault Systemes2.8%

Strategy holdings by sector

All figures up to: 31 January 2024

1Industrials22.90%
2Consumer Discretionary21.30%
3Information Technology18.90%
4Financials14.80%
5Health Care10.70%
6Communication Services10.10%
7Consumer Staples0.60%
8Cash0.60%
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.