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Why growth, why now?

Tim Garratt, Investment Specialist, Partner Mark Urquhart, Investment Manager, Partner

Key Points

  • With growth investors being punished by the markets, it's worth remembering that some previous periods of adversity have led to stellar returns
  • The companies that will flourish in future won't be 'growth' or 'value' but ones that can solve problems, execute their plans and adapt to constant change
  • Baillie Gifford's stable structure balances stubbornness and humility and allows investors to focus on the factors that help companies outperform

All investment strategies have the potential for profit and loss, your or your clients’ capital may be at risk.

It’s been a torrid couple of years for growth investors. A nasty cocktail of rising rates and extreme risk aversion has driven huge market swings and a sharp dip in performance. People are understandably asking whether growth investing can still generate attractive returns from here.

In Why growth, why now? Mark Urquhart and Tim Garratt explain why the answer is an emphatic yes – especially from the current starting point, which feels like a once-in-a-generation opportunity.

At Baillie Gifford, we’ve seen this movie before – many times. Those who have ridden out previous reversals in investment style have historically enjoyed superb returns. While we can’t say for certain, there is every reason to believe that this time will be no different.

The world is swinging from an era of abundance to an era of limitation: in the supply of capital; in environmental resources; in trust between society and corporations – and between old and new superpowers. Mark and Tim's paper explores the characteristics of the companies that will thrive in this new era and explains why Baillie Gifford is well placed to find and hold them.

What are the characteristics of the companies set to flourish in the years ahead? And what makes Baillie Gifford so well placed to find and hold them? Why growth, why now? reaffirms our belief in how growth investing can still generate attractive returns.

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Authors

Tim Garrett,  Baillie Gifford Partner, stands in the firm

Tim Garratt

Investment Specialist, Partner

Tim joined Baillie Gifford in 2007. He is an investment specialist, overseeing the institutional client base that invests in Long Term Global Growth, one of Baillie Gifford’s most concentrated equity strategies with a focus on transformational payoffs. He also leads the broader client specialist ecosystem at Baillie Gifford. Tim became a Partner of the firm in 2016. Prior to Baillie Gifford, Tim worked at AT Kearney where he managed a number of private equity projects. Tim graduated MEng in Aeronautical Engineering from the University of Bristol in 1999.

Mark Urquhart,  Baillie Gifford Partner, stands smiling, in front of a large window in the firm

Mark Urquhart

Investment Manager, Partner

Mark is an investment manager who joined Baillie Gifford in 1996. He is head of the Long Term Global Growth Team, which he co-founded in 2003. He has previously worked in the US, UK and Japanese Equity teams. He became a partner in 2004. Mark graduated BA in Philosophy, Politics and Economics from the University of Oxford in 1992 and spent a year at Harvard as a Kennedy Scholar in 1993 before completing a PhD in Politics at the University of Edinburgh in 1996.

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