Figured a topic for things that are not trust or fund specific, or around anything not in Freetrade, or related to Baillie Gifford in general as an investment management company
I might have posted this before but interesting to hear from a very successful manager that has left Baillie Gifford. He speaks of group think being great at the start but then turning into a round table of nodding heads.
Pacific Horizon is an incredible performing Trust with a very different composition to all other BG Trusts. It specialises in the Asia Pacific region so you would be surprised that it does not hold Scottish Mortgage favourites like Alibaba and Tencent. The ex-manager felt pressured to hold these House favourites but instead sold all of them early in 2021 and saved his shareholders from the regulatory clampdown. He also says he doesnt fall in love with his holdings which cant be said for other BG Trusts
The trust has actually continued its differentiated strategy after his departure and its paid off when compared to its sister Trusts
A nice story. Ive always agreed with his views on UK companies struggling to take a foothold globally. I think Revolut (even with the misconduct) and Transferwise have a good chance of breaking this horrible run.
… and hopefully Freetrade
Over the years I have thought a great deal about that comment (other distinguished investors make it too). In summary I think it is a contextual comment. BG are thinking about a certain level of return … that is the context … this return relates to a certain type of ambition.
I think often that ambition gives them the competitive ‘moat’ or even the ‘deep blue sea’ that they need. Luck also helps.
Apparently unquoted stocks are over 30% (because many of the other valuations have gone substantially down) and so there will be restrictions on new private company investments unless policy changes.
According to 13F/G filings, it looks like BG has doubled down on NIO, MRNA and AFRM lately.
What are people’s thoughts on holding multiple BG trusts? I sold a bunch of them late last year because I was ludicrously overexposed to one management group and investing style.
I still hold SMT, PHI and BGS which I’m content with as they are relatively different. Thankfully/luckily, I got out of KPC, MNKS, USA and EWI just in time.
Looks like they have staggered posts. Mine came a few weeks ago! Note the following comment by Slater in the latest issue
And one of the benefits of being private is that companies feel more able to be open about what they disclose.
For instance, we took a holding in Thumbtack, a US online platform that helps you hire local help for home improvements and other services. It sent us a report split in two. One half said what was working well at the firm, the other what wasn’t. I challenge you to find a public company that would be so frank in an earnings result statement.
Which I think is a big advantage that big investors in private companies (might) have.
Clearly I don’t have the money, time or connections to properly invest in private companies, so I find it’s one of the advantages of finding a well run trust that can do all that work for you while pooling money
