Growth oriented asset manager Baillie Gifford is unconvinced value investing will make a comeback this year despite a recent rotation into the style on the back of Covid vaccine news and the US election result.
In the latest Portfolio Adviser video interview, director of marketing and distribution James Budden explains the firm’s process of finding exceptional companies and holding them over the long term rather than hoping stocks trading below historic prices will revert to a mean.
“I think we remain unconvinced value is going to make a great return,” he concludes.
Budden also touches on how holding certain stocks during lockdown in areas such as e-commerce, digital communication and healthcare contributed to Baillie Gifford’s “exceptional” performance in 2020.
“It’s worth bearing in mind that markets are driven by a small group of high returning companies and it’s all about finding big winners – and this has been very true during the pandemic.”
But Budden says labelling the firm as simply a “tech investor” is misleading. “Tech is everywhere so I think it is pretty redundant as a label,” he says.
He also outlines some of the themes Baillie Gifford expects to crop up in the year ahead.
View the video above for more.
Watch more PA video interviews here
