Baillie Gifford US Growth (USA)

USA aims to deliver long-term capital growth by backing some of America’s most exceptional businesses, whether listed on the stock market or privately owned. Launched in 2018, the trust takes a five-to-ten-year view, seeking companies with substantial growth opportunities, strong competitive advantages and ambitious management teams. Its ability to invest up to half of its assets in private companies gives shareholders access to businesses that would otherwise be beyond the reach of most individual investors, including innovators such as Anthropic, Stripe and Databricks. Alongside these holdings, the portfolio includes established public companies such as Nvidia and Amazon. Drawing on Baillie Gifford’s longstanding relationships with entrepreneurs, the managers seek to capture the value created as businesses develop and expand. The result is a distinctive approach to investing in the US innovation economy, combining public and private markets within a single investment trust designed for patient, growth-focused investors.

In this episode, John Hughman speaks to co-manager Gary Robinson about the trust’s investment approach and the opportunities emerging across America’s growth companies. Gary explains why businesses are staying private for longer, how Baillie Gifford secures access to sought-after investments and how private holdings are valued independently of the fund managers. He discusses their contribution to performance, the challenges of beating a concentrated US stock market and the importance of backing ambitious founders. Artificial intelligence is a central theme, with Gary outlining the portfolio’s exposure, the rapid growth in paid adoption and his focus on durable competitive advantages. He also considers the risks surrounding AI safety, infrastructure and public acceptance, alongside the discipline involved in managing large holdings and reassessing valuations.

Finally, Gary addresses Saba Capital’s proposed board appointments and urges shareholders to make their voices heard by voting early ahead of the trust’s AGM on 23 October this year.