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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 - US Equity Growth. This analysis is provided for institutional research purposes only and is not investment advice.
"Baillie Gifford's US Equity Growth strategy lagged the S&P 500's 15 percent Q2 gain as markets chased semiconductor bottlenecks, but the team maintained conviction in exceptional growth companies trading at decade-low valuations despite 24 percent revenue growth. They added SpaceX, Broadcom, IDEXX and Mastercard while avoiding memory stocks, believing founder-led cultures and durable competitive advantages will drive superior long-term returns as AI disruption separates winners from losers."
Baillie Gifford's US Equity Growth strategy delivered strong low-double-digit absolute returns in Q2 2026 but lagged the S&P 500's 15 percent gain as the market rotated into semiconductor and memory stocks. The team maintained conviction in their core holdings despite the portfolio's price-to-sales multiple contracting 19 percent since October while the S&P 500's expanded 3 percent. Portfolio companies continue growing revenues at 24 percent on average with estimates revised higher, yet the premium to the benchmark is at a decade low. The team added Broadcom for its custom AI silicon capabilities and initiated SpaceX at IPO while reducing Tesla to manage Musk exposure. New positions in IDEXX and Mastercard broaden exposure beyond AI themes. The team avoided chasing memory stocks despite 200 percent plus returns, viewing bottleneck investing as unsustainable. With 75 percent of holdings having founder CEOs versus 20 percent for the S&P 500, they believe their culture-focused approach will prove advantageous as AI disruption plays out. The team sees current dislocations as creating opportunity for patient stock-picking focused on durable competitive advantages rather than transient supply constraints.
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