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easily derailed. Their strengths and
adaptability should enable them
to drive their vision, even amid
evidently seismic political and
economic events. And, by continuing
to be sizeable, highly committed
and patient shareholders of these
businesses, while acting on our
clients’ behalf, we have put ourselves
in the privileged position of taking a
disproportionate share of any future
success.
We are unashamedly bottom-
up investors. You will not hear us
muse on, or attempt to predict, the
daily twists and turns of economic
data, stock market sentiment, or
government policy. We do not think
we can add much on those issues. Our
enthusiasm for some of the exceptional
UK growth businesses spans a wide
variety of different industries.
Long-term winners and the need for
a strong corporate culture
At Baillie Gifford, we have learnt
a lot by owning great businesses
and hope we can use some of those
lessons to spot other big winners
in the future. One of the key things
we have observed is just how
crucial unusual corporate cultures
have been to their excellence. This
manifests itself in a number of
ways. First, they are all united by
an unwavering focus on the long
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term. Whilst most companies tend
to pay lip service to long-termism, it
seems to us that precious few have
the courage to consistently follow
this belief. For most, a quarter or two
of weak demand or missed earnings
expectations is sufficient to result
in ad hoc cost cutting and various
forms of financial engineering to
shore up the numbers. Second,
great UK growth businesses all have
strong identities and a vision which
extends far beyond the imperative
to generate profit for shareholders.
This in turn tends to result in them
having a strong alignment with their
customers and employees.
Conclusion
We are not arguing that conquering
these new horizons will be an
easy task for the companies in our
portfolios. Setbacks along the way
are inevitable, just as they have been
in the past. However, the scale of the
opportunity truly excites us. It is only
through our continued patience and
commitment as shareholders that we
and our clients will be able to fully
benefit from this great potential.
The value of your investment
and any income from it is not
guaranteed and may go down as
well as up and as a result your
capital may be at risk.
Milena Mileva – co-manager
Baillie Gifford UK Growth Fund plc
Milena completed her MPhil in
Politics at Oxford University in
2009, having graduated with a BA
in Social & Political Science from
the University of Cambridge in
2007. She joined Baillie Gifford in
the same year and is an Investment
Manager in the UK Equity Team.
Milena became a member of
the Pan-European Portfolio
Construction Group in 2014.
The trust’s exposure to a single market may increase risk. For more details
on the Baillie Gifford UK Growth Fund plc, including the Key Information
Document, please see our website at www.bailliegifford.com
This article does not constitute, and is not subject to the protections afforded to, independent
research. Baillie Gifford and its staff may have dealt in the investments concerned.
The views expressed are those of Milena Mileva, are not statements of fact, and should not be
considered as advice or a recommendation to buy, sell or hold a particular investment. If you are
unsure whether an investment is right for you, please contact an authorised intermediary for advice.
Baillie Gifford & Co Limited is authorised and regulated by the Financial Conduct Authority (FCA).
The Trust (Baillie Gifford UK Growth Fund) is listed on the London Stock Exchange and is not
authorised or regulated by the Financial Conduct Authority.
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