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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
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Buyside Digest is not affiliated with, and does not endorse, Baillie Gifford -Global Alpha. This analysis is provided for institutional research purposes only and is not investment advice.
"Global Alpha's portfolio trades at an unprecedented discount to the market despite delivering strong fundamental growth and higher expected earnings. The strategy maintains concentrated exposure to AI leaders NVIDIA and TSMC while building breadth across emerging market champions, industry consolidators, and mispriced software businesses."
Baillie Gifford's Global Alpha portfolio returned double-digits in Q2 2026 but lagged the MSCI ACWI index, which was driven by AI-related hardware stocks. The portfolio has delivered almost 20% since the start of 2025, underpinned by strong sales, earnings, and returns growth that have gone relatively unrewarded. This mismatch has caused the portfolio's valuation premium versus the market to evaporate, reaching unprecedented territory with the strategy now trading at a discount on some measures. The manager maintains significant AI exposure through core positions in NVIDIA and TSMC (over 10% combined), hyperscalers Amazon and Alphabet, and newly added specialized equipment makers Besi and Lasertec. Beyond AI, the team added positions in copper miners, industrial gas leader Linde, and Axon Enterprise after its sell-off on misplaced AI concerns. The portfolio's higher expected earnings growth, stronger financial positions, and broad set of growth drivers position it for substantial outperformance as market focus expands beyond the single AI theme. The manager remains convinced that breadth, resilience, and growth will deliver long-term returns.
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