Flash update from Kepler Trust Intelligence

Baillie Gifford US Growth (USA)

22/09/2026

Flash update from Kepler Trust Intelligence

Baillie Gifford US Growth's (USA) shareholders have had some disappointing years since the pandemic, but the past year has seen an impressive return to form. Annual results were just published for the 12 months ending 31/05/2026, in which USA delivered a 31% NAV total return, ahead of the 29.8% of the S&P 500 Index. The shares were up 44.5%. If we bring things up to date, in 2026 the NAV total return of 17.9% is well ahead of the 12.1% of the S&P 500, while the shares are up 22.1% (as of 17/09). The trust has kicked on just as more passive strategies have slowed, with strong performance from SpaceX prior to IPO being very helpful.

The setup for the near future looks really exciting too. In the last financial year the managers invested in Anthropic, the global leader in enterprise AI, which is expected to IPO in October and made up 6.4% of the portfolio as of the end of May. Anthropic has already made a meaningful contribution to returns for 2026, having been written up prior to the listing process. They also added a position in OpenAI, most famous for ChatGPT but breaking new ground with coding models and competitive across multiple vectors. USA also owns the unlisted fintech company Stripe which makes up 7.3% of the portfolio and has been revalued upwards over 2026, within the 28.9% of the portfolio in unlisted investments (after accounting for the listing of SpaceX).

Saba's latest approach to the company therefore seems spectacularly ill-timed. The activist investor has proposed three directors for the board. Saba will of course claim they are independent. Saba also claims to want to offer shareholders a 100% cash exit, but the board points out they have offered this to the activist before and been rejected. If this is so, it can't simply be that Saba wants its money back at NAV, which means we have to wonder what else they might want. The board suggests that Saba wants to get control of the company for its own interests, and this is likely to lead to the end of the current strategy.

We think shareholders should vote against the nomination of Saba's three directors to the board. All the details of when and how to do this are at USA's website. Voting should be available through your platform, and should be done in good time before the AGM on 31/10/2026. The deadline for proxy voting is 1 p.m. on 21/10/2026. Deadlines for voting through platforms will be earlier and may be as early as 14/10/2026, so shareholders must act within the month. Saba cannot win the vote on its own, but if retail shareholders don't vote, it may do.

CLICK HERE TO READ THE FULL REPORT 

Visit Kepler Trust Intelligence for more high quality independent investment trust research.

Important information

This report has been issued by Kepler Partners LLP.  The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.

Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.

Kepler Partners is not authorised to make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.

The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions.

The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.

This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.  

Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm's internal rules. A copy of the firm's Conflict of Interest policy is available on request.

PLEASE SEE ALSO OUR TERMS AND CONDITIONS

Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 70 Conduit Street, London W1S 2GF with registered number OC334771.