| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 16.0% | -7.3% | 10.4% |
| 2025 |
|---|
| 10.4% |
Baillie Gifford's US Equity Growth Fund delivered a 2.66% return in Q4 2025, bringing full-year performance to 28.03%. The fund maintains its concentrated approach, seeking exceptional growth businesses with strong cultures and business models. Key detractors included Roblox, which despite 70% bookings growth faced margin pressure from AI investments, and Netflix, which fell 22% on a Brazilian tax charge despite solid fundamentals. Notable contributors were Guardant Health, benefiting from strong oncology momentum, and Shopify, which grew revenues 32% with improving operating leverage. The fund initiated new positions in Alphabet, capitalizing on AI capabilities under improved leadership structure, and Coinbase, positioned for crypto adoption growth. Looking ahead, the managers remain focused on artificial intelligence as transformational technology while maintaining patience and selectivity. Despite market concerns about AI valuations and potential bubble risks, they believe US companies remain uniquely positioned across the AI value chain from infrastructure to applications.
We aim to identify exceptional growth businesses in America and own them for long enough that the advantages of their business models and strength of their cultures become the dominant drivers of their stock prices, harnessing the asymmetry inherent in equity markets through concentrated portfolios.
The United States equity market has remained resilient despite tariffs and an intensifying focus on valuations, the economic cycle, and the sustainability of near-term returns from artificial intelligence-related investment. While competition is intensifying globally, the breadth, depth, and global reach of leading United States companies remain unmatched. Our focus is on patience and selectivity as active, long-term investors.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 15 2026 | 2025 Q4 | AFRM, ALNY, AMZN, APP, CSGP, DASH, DDOG, GH, GOOGL, IOT, META, NET, NFLX, NVDA, RBLX, SHOP, SNOW, TSLA, W, WDAY | AI, Biotechnology, concentrated, E-Commerce, growth, long-term, technology, US |
RBLX DUOL NFLX GH SHOP LMND GOOG COIN UTHR CHWY INSP PINS TTD |
The fund continues to view artificial intelligence as transformational, with the United States uniquely positioned to benefit across the full value chain from critical infrastructure… |
| Oct 20 2025 | 2025 Q3 | DUOL, FIG, KNF, NFLX, RBLX, SHOP, TTD, W | Artificial Intelligence, Design Platforms, E-Commerce, innovation, software |
KNF Figma KNF |
The fund highlights resilience in U.S. growth equities led by AI-driven platform companies such as Shopify, Roblox, and NVIDIA. Managers added Figma, positioning it as… |
| Jul 11 2025 | 2025 Q2 | - | AI, Compounding, Platforms, Scale, US growth |
MDLN 6857 JP |
The commentary focuses on exceptional US growth companies benefiting from scale, network effects, and technological leadership. AI, cloud computing, and digital platforms are highlighted as… |
| Apr 18 2025 | 2025 Q1 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
BiotechnologyHealthcare industry positioned for catch-up growth after several years of below-trend performance. Government spending expected to increase relative to feared cuts, with companies signaling improvement in revenue growth. Focus on 'picks & shovels' businesses serving the industry. |
Life Science Tools Pharmaceuticals CRO & CDMO Healthcare Research | |
CryptoFund focuses exclusively on Bitcoin accumulation through disciplined cycle-aware positioning. Manager shifted to defensive posture in Q3 anticipating correction, ending Q4 with two-thirds Bitcoin and one-third cash. Going forward, fund will hold only Bitcoin based on data showing altcoins have terrible odds with only 1-in-70 beating Bitcoin historically. |
Bitcoin Altcoins Cycles Accumulation Volatility | |
E-commerceSeveral investments in e-commerce leaders across Asia and Latin America, including MercadoLibre, Sea Limited and Alibaba, faced a more competitive operating environment during the period. As long-term investors, SGA observes that competitive intensity in these markets tends to ebb and flow over shorter time horizons, with market leaders typically emerging from such periods with strengthened strategic positions given inherent network effects. |
Marketplaces Competition Network Effects Asia Latin America | |
GamingNintendo continues to demonstrate exceptional performance with Switch 2 becoming the fastest-selling console in history, selling 17.4 million units in just 7 months. The company has a historically rich first-party software pipeline and is building new recurring revenue streams through Nintendo Switch Online and its expanding cinematic universe. |
Nintendo Console Software Hardware Entertainment | |
StreamingNetflix represents the fund's exposure to global streaming entertainment, despite near-term headwinds from subscriber growth concerns and content spending. The fund continues to view Netflix as the dominant global streaming platform with durable competitive advantages through its content library, technology infrastructure, and growing advertising business. |
Content Global Advertising Platform Entertainment | |
| 2025 Q3 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
Innovation |
||
Technology |
||
| 2025 Q2 |
Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | MDLN | Medline Industries, Inc. | Health Care | Health Care Supplies | Bull | - | Distribution, Logistics, Medical Supplies, Prime Vendor, Private-label | Login |
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | UTHR | United Therapeutics Corporation | Health Care | Biotechnology | Bull | NASDAQ | biopharma, Clinical Catalysts, Drug Expansion, Free Cash Flow, Lung disease | Login |
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | CHWY | Chewy, Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bear | New York Stock Exchange | growth slowdown, Margins, Maturity, Optionalities, Subscription | Login |
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | INSP | Inspire Medical Systems, Inc. | Health Care | Health Care Equipment | Bear | New York Stock Exchange | Adoption Curve, Execution, Market expansion, Medical devices, Reimbursement | Login |
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | PINS | Pinterest, Inc. | Communication Services | Interactive Media & Services | Bear | New York Stock Exchange | advertising, Competition, Execution, monetization, Product Strategy | Login |
| Oct 20, 2025 | Fund Letters | Kirsty Gibson | KNF | Knife River Corporation | Materials | Construction Materials | Bull | NYSE | aggregates, construction, infrastructure, leadership, M&A, Margins, Pricing | Login |
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | TTD | The Trade Desk, Inc. | Communication Services | Advertising | Bear | NASDAQ | adtech, Ecosystems, First Party Data, generative AI, Platform Concentration | Login |
| Oct 20, 2025 | Fund Letters | Kirsty Gibson | Figma | Figma (Private) | Information Technology | Application Software | Bull | - | AI, growth, innovation, SaaS, technology | Login |
| Jan 15, 2026 | Fund Letters | Tom Coutts | 6857 JP | Advantest Corp. | Information Technology | Semiconductor Equipment | Bull | New York Stock Exchange | AI, CapEx, Complexity, semiconductors, Testing | Login |
| Oct 20, 2025 | Fund Letters | Kirsty Gibson | KNF | Knife River Corporation | Materials | Construction Materials | Bull | NYSE | aggregates, construction, infrastructure, leadership, M&A, Margins, Pricing | Login |
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | RBLX | Roblox Corporation | Communication Services | Interactive Media & Services | Bull | New York Stock Exchange | Engagement, infrastructure, Investment cycle, monetization, operating leverage | Login |
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | DUOL | Duolingo, Inc. | Consumer Discretionary | Education Services | Bull | NASDAQ | generative AI, Learning Outcomes, Pricing, Retention, Subscriptions | Login |
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | NFLX | Netflix, Inc. | Communication Services | Movies & Entertainment | Bull | NASDAQ | advertising, capital allocation, Content, Free Cash Flow, Streaming | Login |
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | GH | Guardant Health, Inc. | Health Care | Health Care Technology | Bull | NASDAQ | clinical adoption, liquid biopsy, Oncology, platform, Screening | Login |
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | SHOP | Shopify Inc. | Information Technology | Internet Services & Infrastructure | Bull | New York Stock Exchange | ecommerce, enterprise, operating leverage, platform, Take rate | Login |
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | LMND | Lemonade, Inc. | Financials | Property & Casualty Insurance | Bull | New York Stock Exchange | operating leverage, Pricing Discipline, profitability, underwriting, Unit economics | Login |
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | GOOG | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | Artificial Intelligence, cloud, Data, Distribution, Search | Login |
| Jan 15, 2026 | Fund Letters | Kirsty Gibson | COIN | Coinbase Global, Inc. | Financials | Capital Markets | Bull | NASDAQ | Crypto, infrastructure, Regulation, stablecoins, Staking | Login |
| TICKER | COMMENTARY |
|---|---|
| AFRM | Positive returns from Affirm were not enough to offset the detractors |
| ALNY | New position in biotech company Alnylam Pharmaceuticals. |
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| APP | AppLovin provides tools that help mobile app developers, particularly mobile game developers, market and monetize their products. We exited AppLovin after significant price appreciation. |
| CSGP | The shares of CoStar Group, Inc., the global leader in digitizing real estate, declined in the fourth quarter, due to concerns that the company's residential Homes.com platform will continue to require significant capital investment and competitive worries that Google's new real estate advertisement format and Zillow's OpenAI partnership could divert traffic from Homes.com in the years ahead. |
| DASH | DoorDash Inc. operates a commerce platform that connects merchants, consumers, and independent contractors. reported better-than-expected quarterly results. However, management announced a significant increase in planned investments for 2026, which led to a -17% decline in its share price. |
| GH | Guardant Health, a provider of blood-based diagnostic tests for cancer, performed particularly well, driven by strong Q3 results. Its core oncology business grew revenues 30% vs. 20% in the previous quarter, an acceleration driven by innovative product enhancements. Furthermore, its colon cancer screening tests continued to perform well, growing 50% sequentially from Q2. While shares were up significantly in 2025, we remain bullish on the business, as Guardant continues to lead the charge in converting oncology testing from tissue to blood. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| IOT | Samsara Inc. 1.5 (4.55) (0.01) |
| META | On January 9, Meta Platforms unveiled a new agreement with Vistra—the largest generator of competitive electricity in the United States—as well as with TerraPower and Oklo. The announcement builds on Meta's agreement last year with Constellation Energy and positions the company to become one of the largest corporate purchasers of nuclear-generated electricity in the United States. |
| NET | Jennison also entered a new position in Cloudflare. Its network infrastructure delivers key applications over the internet in a cost-effective manner, with optimal security and best-in-class speed. They could be a big beneficiary of the move to agentic AI applications. |
| NFLX | NFLX was the portfolio's largest detractor in 4Q25 following investor concerns around near-term subscriber growth and rising content spending. While revenue grew approximately 10% year-over-year, management guided to slower net subscriber additions in North America and Europe after recent price increases, and margins were pressured by elevated investment in live sports and international content. |
| NVDA | AI bellwether NVIDIA's very strong set of earnings in late November helped the AI theme re-assert its dominance when investors breathed a sigh of relief following the results. |
| RBLX | An overweight position in Roblox Corp. (RBLX) detracted from performance. The stock declined following quarterly earnings, which signaled slower profit growth and uncertainty around future bookings. |
| SHOP | Shopify Inc. is a cloud-based software provider for multi-channel commerce. Shares rose 8.3% in the fourth quarter, finishing 2025 up 51.1% on strong financial results that outperformed Street expectations. The company is demonstrating rapid growth at scale with gross merchandise value (GMV) and revenues each growing over 30% year-on-year. |
| SNOW | Snowflake is a popular cloud-based platform that provides comprehensive data warehousing services, mainly for large businesses. By being cloud native, Snowflake helps companies more easily store, analyze and share their data across an entire organization, which has become a crucial ingredient for companies prioritizing IT infrastructure upgrades that can incorporate more AI functionality. A recently expanded partnership with Anthropic highlights how the company is quickly deepening its AI capabilities. Competition is fierce, but Snowflake has become the leading player in cloud data storage, especially for those companies looking for an agnostic solution that can support the multiple hyperscalers that many companies employ. Snowflake's unique and dominant position in the data warehousing market, in what should be a high-growth profitable and sticky business over time, makes the company an attractive investment. |
| TSLA | Under the previous system, companies that produced only electric vehicles—most notably Tesla—generated large quantities of credits that could then be sold to manufacturers falling short of their EV production targets, allowing them to avoid regulatory penalties. |
| W | Last quarter, we highlighted that Wayfair's Q2 results were the strongest we had seen in several years and supported our thesis that the business was positioned for a meaningful rebound as the home furnishings market recovered. Q3 built on that momentum. Revenue grew 9% year over year, accelerating from 6% in Q2, while adjusted EBITDA increased more than 70% year over year. These results provide further evidence that Wayfair's future profit growth remains substantial and is materially underappreciated by the market. Wayfair continues to be a top five holding. |
| WDAY | Finally, we have exited our relatively small position in Workday. The company's growth has decelerated the past few quarters and the Financials segment of the business (~25% of sales) is growing slower than we believe it should be. This is a company we may revisit at a later date but, for now, feel that we have better opportunities in other areas of the portfolio. |
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