Investec has said it "remain[s] comfortable" with its 'buy' rating on Baillie Gifford US Growth trust, but cautioned clients that market volatility around the US Election could present a better entrance point in the coming months.
In the 18 months since the trust floated, it has put in stellar performance, returning 152%, according to FE fundinfo - three times as much as that of the S&P 500, at a measly 52%.
A large portion of those gains have come post-Covid, as the pandemic accelerates trends played in its portfolio. Since market lows on 18 March, Baillie Gifford US Growth has gained 120%.
Despite this stellar performance, Investec analyst Alan Brierley said the trust's managers' "long-term, genuinely active growth philosophy represents solid foundations for superior long-term returns".
Further, he reasoned, the trust's sister open-ended fund, Baillie Gifford American, is the best-performing in the Investment Association North America sector over five years, having returned 338% in that period.
"Baillie Gifford US Growth has established itself as a strategic investment and we remain comfortable with our ‘buy' recommendation," Brierley said.
"That being said, for the tactical investor, we are also mindful that the share price has risen 120% since March lows; given economic and political headwinds, there may be an opportunity to increase exposure at lower levels in coming months."
The analyst noted the trust stood out in the sector as "a unique investment proposition", combining, as it does, listed investments with others not currently listed on a public exchange.
Brierley said the ongoing de-equitisation of global financial markets would have "significant ramifications for investors whose portfolios are dominated by listed equities".
He said he was "encouraged by the solidprogress made by [Baillie Gifford US Growth] in building out the unlisted portfolio". "We believe that it provides an elegant and cost-effective solution to this secular trend," he explained.
The trust seeks to identify exceptional growth opportunities in the US and companies which are at the nexus of societal shifts underway, and then hold onto them for the long-term.