| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | 19% |
| 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|
| 19.0% | 2.9% | 10.4% | -32.0% | 3.2% |
Baillie Gifford's International All Cap portfolio underperformed its benchmark in Q4 2025 amid a challenging environment for quality and growth stocks. The portfolio faced pronounced style headwinds as both quality and growth stocks underperformed the broader international market by margins rarely seen in recent years. Performance reflected a familiar divide between companies exposed to structural growth themes, which generally contributed positively, and those more sensitive to near-term consumer and cyclical weakness. Key detractors included consumer-facing platforms like Rightmove and Autotrader, which faced AI-related uncertainty, and Exor, impacted by weakness in autos and agricultural equipment. Conversely, semiconductor companies including TSMC and Samsung Electronics were significant contributors, benefiting from robust AI-driven demand for advanced chips and improving memory market conditions. Other contributors included Games Workshop, Roche, Chugai Pharmaceutical, DSV, and LVMH. Despite near-term headwinds, the manager maintains strong conviction in the long-term prospects of portfolio companies, emphasizing their durable competitive advantages and structural growth positioning. The focus remains on patient capital deployment in exceptional businesses positioned to compound value over time.
Baillie Gifford maintains conviction in high-quality growth businesses with durable competitive advantages, focusing on companies operating in markets shaped by powerful structural forces and led by management teams focused on long-term value creation.
Looking to the future, conviction in the long-term prospects of the businesses owned remains strong. Many operate in markets shaped by powerful structural forces, possess durable competitive advantages, and are led by management teams focused on long-term value creation. The focus remains unchanged: to invest patiently in exceptional businesses and allow them the time to compound in value.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 15 2026 | 2025 Q4 | 005930.KS, 3317.T, 4519.T, 6869.T, 8035.T, ASML, AUTO.L, DSV.CO, EXO.MI, GAW.L, MC.PA, MELI, NMET.DE, RMV.L, ROG.SW, TSM | AI, growth, healthcare, international, Luxury, Quality, semiconductors, technology | - | Baillie Gifford's International All Cap portfolio underperformed in Q4 2025 due to style headwinds affecting quality and growth stocks. Semiconductor companies like TSMC and Samsung drove positive performance through AI demand, while consumer platforms faced uncertainty. Despite near-term challenges, the manager maintains conviction in high-quality businesses with durable competitive advantages and structural growth positioning. |
| Oct 20 2025 | 2025 Q3 | 000333.SZ, 005930.KS, 0388.HK, 0700.HK, 1299.HK, 300750.SZ, 4519.T, 4612.T, 4911.T, 6098.T, 6273.T, 669.HK, 6861.T, 7733.T, 7741.T, 7980.T, 8035.T, 8113.T, ABI.BR, ADYEN.AS, AHT.L, AI.PA, ASML, ASSA-B.ST, ATCO-A.ST, AUTO.L, B3SA3.SA, BHP, BIM.PA, BNZL.L, CABK.MC, CFR.SW, DSV.CO, EPIROCK-A.ST, EXO.MI, EXPN.L, FEMSAUBD.MX, GAW.L, GRG.L, HDB, IMCD.AS, INVEB.ST, ITRK.L, JMT.LS, LONN.SW, MC.PA, MELI, NEM.DE, PRX.AS, RADL3.SA, RCO.PA, RMV.L, ROG.SW, RYA.L, SCT.L, SEB-A.ST, SIK.SW, SOI.PA, SPOT, SPX.L, TRN.L, TSM, TTE, UBS, UL, UOB.SI, WALMEX.MX, WEIR.L, WISE.L | AI, Asia, Europe, growth, healthcare, international, semiconductors, technology | - | Baillie Gifford's international growth fund underperformed in Q3 despite strong semiconductor gains from TSMC and ASML benefiting from AI chip demand. Diagnostic equipment and banking holdings faced headwinds from operational disruptions and margin pressures. New positions in bioMérieux and CaixaBank target structural healthcare growth and attractive banking valuations. Technology holdings remain core to AI adoption thesis. |
| Jul 11 2025 | 2025 Q2 | 6869.T, 6981.T, ATD.TO, BNZL.L, BRBY.L, JMT.L, MC.PA, RYA.L, SIK.SW, SPOT | Europe, growth, international, Quality, tariffs, Valuations | - | Baillie Gifford's International All Cap delivered strong absolute returns despite US tariff uncertainty, with flows rotating toward attractively valued international markets. The strategy maintains focus on resilient, structurally advantaged companies with strong competitive moats. Structural changes across Europe, Japan, and emerging markets provide compelling long-term tailwinds for growth-focused international investing. |
| Apr 18 2025 | 2025 Q1 | 2330.TW, 6273.T, 8035.T, ASML, BHP.AX, ROG.SW, SPX.L, SRT3.DE, UBS | banks, China, Cyclical, defense, Europe, growth, international, semiconductors | - | Baillie Gifford's International All Cap underperformed in Q1 as European defense and banking sectors rallied, areas where the growth-focused strategy has minimal exposure. However, cyclical recovery is emerging across industrials, healthcare, and semiconductors while Chinese stimulus creates global growth opportunities. Three new holdings added target underappreciated growth with re-rating potential. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI presents both opportunities and uncertainties for portfolio companies. While AI tools may benefit online platforms long-term, near-term market caution exists about potential position erosion. TSMC benefits from robust AI chip demand, and Samsung gains from AI-related memory market improvements. |
Artificial Intelligence Chips Memory Platforms |
SemiconductorsSemiconductor companies were among the most significant contributors to performance. TSMC benefited from strong AI chip demand, Samsung from improving memory conditions, and related equipment companies like ASML and Tokyo Electron performed well. |
TSMC Samsung Memory Equipment | |
QualityQuality stocks faced a pronounced style headwind, underperforming the broader international market by a margin rarely seen in recent years. The portfolio's structural bias towards high-quality growth businesses created challenging conditions during the quarter. |
Style Growth Underperformance | |
GrowthGrowth stocks significantly underperformed alongside quality stocks, creating headwinds for the portfolio's structural positioning. However, companies aligned with structural growth themes demonstrated resilience and strong performance. |
Style Structural Resilience | |
| 2025 Q3 |
AIArtificial Intelligence remained a dominant theme during the quarter, with several perceived beneficiaries rallying. Rising demand for AI-related chips is pressuring customers to push into more advanced nodes and adopt EUV technology. The rapid adoption of AI applications and high-performance computing is driving unprecedented orders for leading-edge technologies. |
Semiconductors EUV Advanced Nodes High Performance Computing Chip Demand |
SemiconductorsSemiconductor companies delivered strong performance with TSMC and ASML as key contributors. TSMC benefited from exceptional demand for advanced semiconductor nodes driven by AI applications. ASML maintained its dominance in advanced lithography with effective monopoly in EUV technology, supported by long lead times and high technical barriers to entry. |
Foundries Lithography Advanced Nodes EUV Technical Barriers | |
DiagnosticsThe fund added bioMérieux, specializing in in-vitro diagnostic tests for infectious diseases. The IVD sector is positioned for robust expansion driven by demographic shifts, urbanization, climate change, and increasing microbial resistance. Enhanced speed and accuracy in diagnostics enable earlier interventions and better patient outcomes. |
IVD Infectious Diseases Demographics Microbial Resistance Patient Outcomes | |
| 2025 Q2 |
Trade PolicyUS imposition of tariffs on global trading partners created uncertainty for companies and management teams. The tariff shock highlighted merits of international equities after US outperformance. Management teams expressed concerns about prolonged uncertainty effects rather than direct tariff impacts. |
Tariffs Uncertainty International |
LuxuryLVMH, the luxury conglomerate behind brands like Louis Vuitton and Dior, was among detractors from performance due to temporary issues for structurally advantaged businesses. |
LVMH Brands Conglomerate | |
TravelRyanair, Europe's leading low-cost airline, delivered stronger performance as a domestically focused growth company benefiting from the tariff context. |
Airlines Europe Domestic | |
StreamingSpotify, the music streaming platform, was a clear standout with continued strong contributions from digital platform holdings. |
Music Digital Platform | |
| 2025 Q1 |
Defense SpendingEuropean defense companies have rallied strongly driven by government announcements of increased spending. However, determining which companies will benefit most remains challenging due to local politics, uncertainty about future warfare requirements, and significant re-rating that may have eliminated upside potential. |
Defense Government Spending Europe Rally |
ChinaChina has announced significant stimulus measures over the past six months with private capital and entrepreneurs being embraced again. Xi Jinping's recent meeting with technology entrepreneurs signals renewed support for the sector, creating opportunities for both domestic Chinese names and global companies exposed to Chinese growth. |
Stimulus Technology Growth Recovery Entrepreneurs | |
Semiconductor CycleCompanies like ASML and Tokyo Electron have provided positive guidance for the year ahead. TSMC continues to grow at 30% annually at undemanding valuations, representing exciting opportunities in the semiconductor supply chain recovery. |
ASML TSMC Recovery Growth Valuations | |
GrowthThe strategy focuses on growth investing, seeking companies with underappreciated growth potential that can accelerate from low starting multiples. This approach targets both growth returns and valuation re-rating opportunities across industrials, healthcare, and semiconductor-related companies. |
Acceleration Valuations Re-rating Industrials Healthcare |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| 005930.KS | Top gainers included Samsung (+38% in U.S. dollar terms) |
| 3317.T | Chroma also did well as related semiconductor production equipment companies also did well in the quarter. |
| 4519.T | During the quarter we initiated a position in Chugai Pharmaceutical, which is majority owned by Roche. We like the continued sales growth of its core products, and we think the market had underestimated the potential royalty payments for Orforglipron, a weight-loss pill which Chugai has licensed to Eli Lilly. |
| 6869.T | We did begin building a position in a new holding, Sysmex Corporation, a global leader in diagnostic equipment, with a large installed base and recurring revenue characteristics that we believe support long-term value creation. |
| 8035.T | Tokyo Electron did well in the quarter as related semiconductor production equipment companies also did well. |
| ASML | ASML, TSMC, and Arista Networks are key players in the AI build out supply chain. |
| AUTO.L | Auto Trader, a UK-listed automotive classifieds platform, was the Fund's largest detractor. This reflected a combination of short-term factors unrelated to its half-year earnings release in November, which was a positive surprise. These included the rollout of its new Deal Builder product in late 2025, which triggered backlash from a small but vocal portion of its UK dealer base and threats of coordinated cancellations. While actual cancellations were well under 1% of its customer base, and management undertook rapid and extensive outreach efforts with dealers, this episode likely weighed on investor sentiment. |
| DSV.CO | DSV A/S was one of the top five winners for the quarter. |
| EXO.MI | Decline in prices of holdings and widened discount to NAV. We have favoured Exor despite/because of the recent downturn in Ferrari shares, given the strong see-through publicly listed element of over 85% of the portfolio, allied to strong capital management. |
| GAW.L | Games Workshop was identified as one of the largest contributors in 2025 and also contributed meaningfully in 2024, a reminder that patience pays when a business is delivering. |
| MC.PA | Top gainers among the Fund's holdings included LVMH (+24%) |
| MELI | E-commerce Volatility: turbulence in our e-commerce portfolio companies, Sea Ltd (Southeast Asia) and MercadoLibre (Latin America), amidst aggressive price wars. |
| NMET.DE | Nemetschek by ongoing weakness in global construction activity. |
| RMV.L | Rightmove, highly cash-generative UK online marketplace, saw weak share price performance. While AI tools and functionality may turn out to be beneficial to online platforms in the long term, in the near term, the market is taking a cautious stance on the impact of AI, based on the possibility that their positions could be eroded or that investment may need to increase. |
| ROG.SW | Top gainers among the Fund's holdings included Roche (+27%) |
| TSM | TSMC was a top contributor during the quarter, driven by robust demand for advanced semiconductor manufacturing and improved gross margins as AI continues to grow strong and the non-AI segment showed signs of recovery. Management raised its revenue growth guidance to the mid-30% range, and given continued strength in demand, AI-related growth targets are expected to move above the current mid-40% level. |
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