Baillie Gifford US Growth in danger of running out of steam - Stifel

Rating downgraded to 'neutral'

David Brenchley
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Baillie Gifford US Growth trust manager Gary Robinson
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Baillie Gifford US Growth trust manager Gary Robinson

Broker Stifel has downgraded its recommendation on the Baillie Gifford US Growth Trust (BGUS) to 'neutral' on worries that its returns have been "brought forward" by the acceleration of several structural trends as a result of the coronavirus pandemic and "may run out of steam".

The trust delivered spectacular returns for shareholders through 2020, seeing 133.5% in share price total return and 118% NAV TR, compared to the wider S&P 500's gain of 14% and IT North America sector peers' average 20.6% gain. Those figures came off the back of the acceleration of a number of structural trends in which the trust, launched in 2018, is invested, including online shopping and telemedicine. Baillie Gifford's Robinson: Three reasons Tesla's share price could continue to climb Elsewhere, the largest holding in the portfolio, electric car maker Tesla, shot the lights ou...

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