Baillie Gifford American Fund

[WokkaWokka]

Evening All,

Currently looking at a number of funds to diversify my pension, one of which is the Baillie Gifford American Fund (GB0006061963:GBX)

Does anyone hold this? Its top 5 are Tesla, Shopify, Amazon, Wayfair and Trade Desk.

I am wondering what the general consensus on the long term viability of this fund is.

To me, Tesla (around 9% of the fund) looks hugely overvalued and I think that it could bite the fund in the rear should it underperform but the results of this fund are quite staggering.

Thanks

[CubanPete]

Depending when they bought it is probably the Tesla investment that made the results staggering (and consequently why a tesla is now such a high proportion).

[CubanPete]

[bitchstewie]

I bought into it with similar concerns a few months back.

I'm now 60% up.

I ask myself at how many points I'd have looked at the graph and thought "it can't keep doing that" v where I am now.

One to watch closely and limit your exposure to that which you're comfortable with IMO.

[Lim]

I think it helps to ignore the chart and just look at the holdings.

The fund is only allowed to hold x% of tesla, so it will have sold off and rebalanced. So the chart can be a bit misleading re Tesla.

I sold this fund on March 30th

I know what I'm talking about!

[bitchstewie]

If it's an OEIC I think there's a regulatory limit that means an individual holding can't exceed 10%.

[85Carrera]

Lim said:

I know what I'm talking about!

The chart above suggests otherwise

[Meeten-5dulx]

Have them in my SIPP.
Prob one of my best performers, up 120% and now makes up 5.5pc of my total portfolio.

[WokkaWokka]

I think I’m safe with a dabble but I won’t be chucking a lump sum in and letting it sit rather some smaller investments over time, see where it gets me.

Anyone got any others that are worth looking at?

I have been sent details on the JPM natural resources fund (GB00B88MP089) which is probably another Id look to divert some cash into.

Anyone got any experience of that?

[WillB]

Consider Baillie Gifford Global Discovery as well, has 6% in Tesla

I've held that since 2014 and it's been a good solid performer

[Mazinbrum]

WillB said:

Consider Baillie Gifford Global Discovery as well, has 6% in Tesla

I've held that since 2014 and it's been a good solid performer

I’ve had both for 3 weeks and up 10% on both, I’m expecting a correction though.

[WokkaWokka]

In theory if Tesla dropped 10% what would that do to the fund growth and price?

Is the fund balanced enough to be able to sustain if not the same but a good rate of growth.

Amazon ain’t going nowhere in my opinion. They don’t have any real competition.

[bitchstewie]

WokkaWokka said:

In theory if Tesla dropped 10% what would that do to the fund growth and price?

Is the fund balanced enough to be able to sustain if not the same but a good rate of growth.

Amazon ain’t going nowhere in my opinion. They don’t have any real competition.

It would take off 10% of 8%.

Now if 50% of your investment pot is Baillie Gifford American that might be a problem.

10% or less in Baillie Gifford American and do you really care?

At that level Tesla could disappear off the face of the earth and you've lost 1% of your investments.

People seem to lose their st over Tesla a lot (not aimed at you) and I don't get it

[WokkaWokka]

bhstewie said:

It would take off 10% of 8%.

Now if 50% of your investment pot is Baillie Gifford American that might be a problem.

10% or less in Baillie Gifford American and do you really care?

At that level Tesla could disappear off the face of the earth and you've lost 1% of your investments.

People seem to lose their st over Tesla a lot (not aimed at you) and I don't get it

I know what you mean. I think as a business personally I just don’t like them and I’m not keen on musk either BUT they are at the forefront of battery technology etc.

When I look at the financials vs amazon they are nowhere but it’s just whether an investment in this particular fund can keep up its growth.

[Phooey]

CubanPete said:

Wow.

Rightly or wrongly.. but whenever I see something that has gone off the scale in a short time like that I tend to stay away from it and just tell myself I'm too late to 'this' party.

That is very impressive though and I am jealous

[bitchstewie]

WokkaWokka said:

I know what you mean. I think as a business personally I just don’t like them and I’m not keen on musk either BUT they are at the forefront of battery technology etc.

When I look at the financials vs amazon they are nowhere but it’s just whether an investment in this particular fund can keep up its growth.

If you read/watch/listen to a few articles by James Anderson and Tom Slater they may change your mind

Their take on many of their investments is that traditional valuations are out the window and you're more into intangibles.

For example with Tesla everyone focuses on what each car they've sold is worth.

Anderson and co will ask you what Tesla could do over the coming years given their absolutely tiny market share right now.

Also google Dave Bujnowski and watch the videos.

Baillie Gifford are very clear that they don't take a short term view though.

[grant8064]

bhstewie said:

If you read/watch/listen to a few articles by James Anderson and Tom Slater they may change your mind

The annual reports are well worth reading too.

OP - The most recent gives a full listing of holdings, albeit a bit out of date it's a good guide.

Edited by grant8064 on Sunday 24th January 19:29

[500swk]

WokkaWokka said:

I know what you mean. I think as a business personally I just don’t like them and I’m not keen on musk either BUT they are at the forefront of battery technology etc.

When I look at the financials vs amazon they are nowhere but it’s just whether an investment in this particular fund can keep up its growth.

i thought tesla bought in their batterys,could be wrong though

[Highway Star]

CubanPete said:

That graph looks somewhat steeper over the past year than the 5 year graph I can see on HL, but it certainly has gone bonkers in the past year.

Jan-16-Jan-17: +46%
Jan-17-Jan-18: +22%
Jan-18-Jan-19: +19%
Jan-19-Jan-20: +28%
Jan-20-Jan-21: +120%

So very solid returns and then crazy nuts. A uni friend of mine works for Baillie Gifford. I bought in in 2015 or so, I bought my wife in in around 2017 and I've put some of my son's money in too, each no more than 5-10% of our total pots. Wish I'd bought more! Always ready to cash out though, I'm ready for the ride to end if needs be.

[Highway Star]

On a Baillie Gifford tip - their China fund has done very well over the past few months.