Baillie Gifford US Growth returns drop over 45% but maintains strategy conviction

Discount at 12% from a premium in 2021

During the financial year to 31 May 2022, the company's return in share price and net asset value terms (after deducting for borrowing) were down 45.5% and 35.3%, respectively, as markets moved against its growth investing style.

The trust, managed by Gary Robinson and Kirsty Gibson, moved from a premium of 4% last year to a discount of 12.3% at the end of May. Net gearing increased from 1% to 6% over the course of the year. In the results the managers said: "It is easier to be long-term when things are going well. It is during periods of weakness that conviction is truly tested. "Bear markets cause emotions to bubble to the surface which urge one to act. It can be cathartic to do something, but decision making under stress increases the chances of errors." Baillie Gifford UK equity strategies suffer low ra...