Capital at risk

Investment strategy

UK Alpha

We invest in a small collection of tremendously exciting UK businesses. Many may not be household names, but they are typically leaders in their fields with attractive competitive positions that rivals find hard to match.  

We pride ourselves on the strength of our relationships with companies and the level of corporate access and insight this affords us.  

Tower Bridge viewed from an alleyway in London.

A carefully selected portfolio

This is a punchy, concentrated portfolio of 30-50 carefully selected British businesses. We typically invest in them for at least five years to take full advantage of their strengths as they emerge over time.

Seeking out potential

Our objective is to outperform the FTSE All-Share index by 2 per cent per annum, after management fees, over rolling five-year periods. 

To achieve this, we aim to identify well-managed, high-quality growth companies which enjoy sustainable competitive advantages. We seek out businesses that have the potential to deliver superior earnings growth over many years and hold onto them long enough for their strengths to emerge as the dominant influence on share prices.  

We take stewardship seriously, meeting with management and boards regularly, voting thoughtfully at general meetings and advocating for change where needed. 

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.

Investing to add value

This is a concentrated portfolio, which only invests in between 30-50 stocks. Therefore, it looks very different to the broader UK equity index and has a very high active share.  

This is simply because we believe that to add value over the long-term, we need to take an active and differentiated approach.  

When we look across the portfolio, we can group our holdings into broad themes that we are really excited about, including research and development innovators, digital consumer stocks and world-class industrials. 

Meet the manager

Milena Mileva

Milena Mileva

Milena joined Baillie Gifford in 2009 and became a partner in 2022. She is an investment manager in the UK Equity Team and lead manager of the UK Alpha Strategy. She has also been a member of the International All Cap Portfolio Construction Group since May 2022. Milena graduated BA in Social and Political Science from the University of Cambridge in 2007 and MPhil in Politics from the University of Oxford in 2009.

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 January 2024

#Holding% of portfolio
1Games Workshop7.8%
24imprint 7.7%
3Auto Trader7.3%
4Experian7.2%
5Wise5.0%
6Kainos3.4%
7Softcat3.4%
8Genus3.4%
9Ashtead3.4%
10AJ Bell3.3%

Strategy holdings by sector

All figures up to: 31 January 2024

1Software and Computer Services17.70%
2Industrial Support Services14.60%
3Investment Banking and Brokerage Services7.90%
4Leisure Goods7.80%
5Media7.70%
6Pharmaceuticals and Biotechnology6.60%
7Industrial Engineering5.10%
8Retailers5.00%
9Electronic and Electrical Equipment4.40%
10Beverages4.10%
11Industrial Transportation3.40%
12Travel and Leisure3.30%
13Real Estate Investment and Services2.40%
14Industrial Metals and Mining2.20%
15Others8.30%
16Cash-0.60%
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.