London, UK, 4 October 2022

Edison issues update on Baillie Gifford US Growth Trust (USA)

Baillie Gifford US Growth Trust (USA) has seen its net asset value (NAV) significantly fall in 2022 as growth stocks have fallen out of favour with investors. In addition, USA's share price has moved to a material discount to NAV for the first time since launch in March 2018. As a long-term fundamental investor, Baillie Gifford believes that the current investment opportunities in long-duration, high-growth stocks provide a tremendous opportunity for conviction investors, which could lay the foundations for the long-term outperformance of the fund.

Baillie Gifford is well known for its growth investment style; however, the US team arguably take this further than almost any other team. Its relentless focus on identifying tomorrow's leaders, often at a very early stage of their development in nascent and dramatically evolving markets within what is possibly the most prominent growth market in the world, sets it apart from the majority of its peers. In addition, the material weighting towards unquoted investments adds a further layer of differentiation. In 2022, growth as a style has fallen dramatically out of favour, which has negatively affected USA investor returns in both NAV and share price terms. However, the collegiate management team and long-term process have been in place over many years, over which time investors have been well rewarded. There are clearly risks in owning in some cases pre-profit and unquoted investments, which may guide investors to consider the position size for investments of this nature within diversified portfolios. The current discount to NAV of 19% could prove to be an attractive level to add to or initiate positions in USA.  

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

David Holder +44 (0)77 9626 8072 [email protected]

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        www.linkedin.com/company/edison-group-/

Twitter             www.twitter.com/Edison_Inv_Res

YouTube       www.youtube.com/edisonitv