Baillie Gifford is Bonkers

BLB53

If you look at the 20 year performance of 2 of BGs most celebrated ITs it shows that only recently have they outperformed a simple FTSE 250 tracker.

Are these total return figures for Monks/SMT or just share price returns?

A_T

BLB53 wrote: »

Are these total return figures for Monks/SMT or just share price returns?

total return

Alexland

A_T wrote: »

total return

Remember that Monks was a completely different defensive capital preservation proposition until a couple of years ago when the BG global alpha growth team took over management. As such the long term past performance is irrelevant.

Alex

A_T

Alexland wrote: »

Remember that Monks was a completely different defensive capital preservation proposition until a couple of years ago when the BG global alpha growth team took over management. As such the long term past performance is irrelevant.

Alex

Indeed. Monks have only recently shown good performance by going heavy on NASDAQ listed stocks. Really if you like this kind of approach you might as well use a NASDAQ tracker ETF.

The same goes for other celebrated ITs. Really over the long term they're not doing anything special.

masonic

Alexland wrote: »

Remember that Monks was a completely different defensive capital preservation proposition until a couple of years ago when the BG global alpha growth team took over management. As such the long term past performance is irrelevant.

Yes, seems a clear change in strategy as well as managers and much better to look at manager past performance. The three managers all seem to have fairly average performance prior to ~2012 and it does seem to be the case that they have more recently had much better fortune. The key question is will they be able to preserve their new-found gains when the market turns.

Alexland

masonic wrote: »

The key question is will they be able to preserve their new-found gains when the market turns.

Yup a classic problem with any active investment. I guess that's why the Bonkers strategy is designed to ride on the tail of good fortune before moving onto the next winner.

Alex

aroominyork

Alexland wrote: »

Still it should increase the choice of trusts in my son's BG child savings plan - not that it matters as we are very happy with just Monks. Not that my son has a clue what this is all about at 2yrs old...

Did he benefit from the 10% shrink in discount when the new managers took over in 2015, or was he not an in utero investor?

Alexland

aroominyork wrote: »

Did he benefit from the 10% shrink in discount when the new managers took over in 2015, or was he not an in utero investor?

Sadly he missed that one as he was too busy growing fingers and toes which may have been a better use of his efforts. It will be interesting to see how the BG growth trusts weather the next downturn. I am only investing £50 per month but I would be more concerned if I had already accumulated a large holding.

Wildsound

I'm a big fan of Baillie Gifford the last few years. Their managed balanced fund is a good multi asset fund. I am currently invested in their Japanese Smaller Companies fund as well as their Greater China fund, the first bringing me some strong returns so far this year. The American fund would have been my choice of fund to go into had I been optimistic for US equities (which I haven't been) and have preferred to gain US exposure through Global funds instead.

Thrugelmir

Two of the funds have major weighting in the FANGS. The other has a sizable holding in Ocado.

Little point investing with hindsight. Identifying opportunities earlier is the name of the game.