| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 139.76 | -51 |
| Intrinsic value (DCF) | 108.95 | -61 |
| Graham-Dodd Method | 4.93 | -98 |
| Graham Formula | 27.81 | -90 |
Baillie Gifford US Growth Trust PLC (LSE: USA.L) is a UK-domiciled closed-ended equity mutual fund managed by Baillie Gifford & Co, focusing exclusively on high-growth U.S. equities. The fund employs a bottom-up, fundamental analysis approach to invest across diversified sectors and market capitalizations, targeting companies with long-term growth potential. As part of Baillie Gifford's renowned active management strategy, the trust offers investors exposure to innovative American businesses, from disruptive tech startups to established market leaders. With £667.9 million in assets under management (as of latest reporting), the fund caters to investors seeking concentrated U.S. growth equity exposure without direct stock-picking. Its zero-dividend policy reflects its pure capital appreciation mandate. Operating in the competitive asset management sector, the trust differentiates itself through Baillie Gifford's research-intensive philosophy and decade-long investment horizon.
Baillie Gifford US Growth Trust presents a compelling vehicle for investors seeking concentrated exposure to high-growth U.S. equities through active management. The fund's 0.73 beta suggests lower volatility than the broader U.S. growth equity market, potentially appealing to risk-conscious growth investors. However, the negative operating cash flow (£5.82 million) and absence of dividends may deter income-focused investors. The trust's £39.3 million debt position warrants monitoring given rising interest rates. Performance hinges on Baillie Gifford's stock-picking acumen in a challenging environment for growth investing. The zero-dividend policy reinforces its pure growth mandate but limits investor base. With £6.62 million cash reserves, the trust maintains liquidity for opportunistic investments during market dislocations.
Baillie Gifford US Growth Trust competes in the specialized niche of U.S.-focused growth equity closed-end funds. Its primary competitive advantage stems from Baillie Gifford's established reputation for identifying secular growth winners early, evidenced by past successes with companies like Tesla and Amazon. The trust's concentrated portfolio (typically 30-50 holdings) allows for meaningful stakes in high-conviction ideas, differentiating it from more diversified peers. However, its active approach faces challenges from low-cost U.S. growth ETFs that replicate indices like the Russell 1000 Growth. The trust's UK listing creates currency risk for GBP-based investors compared to USD-denominated competitors. Performance is highly dependent on the manager's ability to consistently identify underappreciated growth stories before broader market recognition - a skill that becomes increasingly difficult at scale. The closed-end structure provides stable capital for long-term investing but can trade at persistent discounts/premiums to NAV, adding another layer of complexity for investors compared to open-ended alternatives.