“We have already opened a base on the European continent in 2019 with the opening of our office in Frankfurt and we have become closer to our Austrian clients. We are still building on this and devoting more time and resources to the Austrian market, ”says Tanja Schneider. “We have a clearly defined offer for our customers – highly focused, actively managed portfolios to find the growth champions of tomorrow.”
It has been operating since 1908 and develops without acquisitions or mergers
Founded in 1908, Baillie Gifford is an independent global investment firm organized as a partnership with all members active in the firm. This ownership structure is unique to an asset manager of this size and tradition. The company has grown organically for 112 years, without mergers and acquisitions.
Baillie Gifford’s investment managers look for companies that are in their early stages of growth with the potential to transform their sectors and develop the wider economy, and then have a tendency to invest over longer periods of time. The average holding period with a company is around eight years, although some companies are in the portfolio much longer. Investment managers can also withstand failure if they are convinced of the company.
Amazon, Tesla and Co.: In the beginning, they had the right “nose” for the tech giants
Baillie Gifford first invested in Amazon around 2003 before halving the share price shortly thereafter. Believing Jeff Bezos had the right vision to transform the company from an online bookseller into a platform firm, Baillie Gifford continued to invest on behalf of his clients. They have since benefited from the fact that the share price has risen exponentially over the two decades. Baillie Gifford has also been associated with companies such as Spotify and Tesla for many years.
To enable its clients to participate as early as possible in the value development of exceptional companies and to build relationships with founders and CEOs, Baillie Gifford is investing in suitable closed vehicles long before the IPO. These private company investments now amount to $ 5.7 billion. These include companies such as the Munich-based Lilium air taxi start-up, the Swedish battery manufacturer Northvolt, and the cryptographic technology company Blockchain.com.
“Providing capital for revolutionary companies with patience and optimism is what investing is really about. So it’s more about supporting ideas, entrepreneurs, and management teams that can fundamentally change our world, rather than analyzing stock prices and valuations. The noise of the financial markets only distracts from the essential task. For us, it is about helping companies that meet the main challenges of our society and offer products and solutions that we all use, ”says Stuart Dunbar, partner at Baillie Gifford, explaining the asset manager’s investment philosophy.
Dunbar is one of 51 partners that owns Baillie Gifford and jointly manages the company. Many partners are responsible for investment strategies and thus help shape the investment success on their own.
Dunbar: “We are not obligated to any bank or any other external owner, but to ourselves. We believe that with this ownership structure, we make far-sighted decisions that are in the interests of both our clients and portfolio companies. Our investment managers look at the company’s potential. and not on the current earnings, ignoring the noise in the market and quarterly reports ”.
“Long term” with a difference: the longest-lasting customer has invested in Baillie Gifford for over 100 years
At Baillie Gifford, this philosophy is also reflected in customer relations. “We work with clients who understand our investment approach and support it through market cycles. Above-average phrases also require above-average patience, ”Dunbar says. “Our business strategy for Europe reflects the way we invest. We want to build long-term partnerships that will last for many years. ”
Keyword Long Term Partnerships: According to Stuart Dunbar, more than 100 clients have invested in Baillie Gifford for 20 years or more and one client has been investing in more than 100 years.
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