Elon Musk, Tesla CEO, speaks at an opening ceremony of the Tesla China-made Model Y program in Shanghai on Jan. 7.
Aly Song | Reuters
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The market continues to underestimate the potential of exceptional growth companies, and by selling disruptive names too early, investors are missing out on returns. At least that’s the driving philosophy behind the US equity growth fund Baillie Gifford, which set an outstanding performance record last year, said Gary Robinson.
Robinson is one of the fund’s portfolio managers, which has posted a 120% return this year due to holdings such as Tesla, Zoom Video and Amazon.
The fund far outperformed its benchmark in 2020 – Russell 2000 growth increased 36% over the year – as well as 99% of the roughly 1,300 other funds in its category, according to Morningstar. The agency has a five-star rating for the fund, which has posted an annual return of more than 47% for the past three years.
At its simplest, the fund’s strategy is to buy exceptional growth companies and then stick with them.