The Ostrich, The Index, and us: seeking exceptional US growth in a top-heavy market

The US is the most innovative country in the world. It creates more great growth companies than any other country combined. Yet, its stock market indices are currently at record levels of concentration – just seven companies, the ‘Magnificent 7,’ account for over a third of the S&P 500 index and over half of the Russel 1000 Growth index. Combine this with the noise around AI, inflation, valuations and politics, it's easy to lose sight of the true drivers of long-term returns. The reality is that a small group of exceptional growth companies harnessing powerful societal changes are the ones that produce outsized gains - and eventually become the mega-cap leaders of tomorrow.

In this session, we'll explore market concentration and the Baillie Gifford American Fund: how it identifies transformative companies early and invests in them with conviction to capture their asymmetric returns. We will focus on the influential changes happening in the US today that we believe will fuel the next generation of winners. We'll also discuss how this high-conviction, growth-oriented approach positioned to benefit from the mega caps of the future can enhance a diversified portfolio.

Join this Online working lunch to discover:

• The potential risks of investing in a concentrated index
• Why and how Baillie Gifford’s American Fund seeks exceptional growth companies that could be the mega caps of tomorrow
• How this approach can help you manage your exposure to a vitally important, but top-heavy market

Speaker 

Ben James, Investment Specialist Director, Baillie Gifford

Ben is an investment specialist for our US Equity Strategy and Scottish Mortgage. He is also a member of the US Equity Product Group. He joined Baillie Gifford in July 2015. Before his career in finance, Ben was an Infantry Officer in the British Army for eight years. During his service, he completed two combat tours of Afghanistan. Prior to this, Ben spent four years working as a professional musician. Ben graduated with a Masters in International Development focusing on sustainable investing and a BMus (Hons) in Music, both from The University of Birmingham.