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Baillie Gifford, unlike a lot of their peers, are almost exclusively an equity shop, they have very little in the way of fixed income assets. If you look at the breakdown below almost three quarters of their assets are in Global/International equities. The vast majority of these assets will be benchmarked against a Global/Int. benchmark, of which Tesla is a constituent and a large constituent at that. Lots of Global/Int. equities under management and a strong conviction on Tesla means you end up having A LOT of Tesla across the firm, both in their various funds and portfolios for institutional clients.
EDIT: Not shitting on Baillie Gifford in any way, just stating the obvious.
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ElGonzo
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Makes sense, thanks for the break down. I read they had made a big tesla sell lately.
BG definitely the hip managers of the moment 😎
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I'm interested to know a bit more about Baillie Gifford. Take out the big drop at the beginning of Covid which hit everyone, if you look at their 5-year performance, they have a very smooth, straight line of growth. They typically weather the troughs quite well with not too much of a drop each time where other funds get hit worse. Then the peaks are slightly lower too, where other funds peak higher.
Their day-to-day price is much less spiky too. I've noticed other funds day-to-day price can fluctuate quite a lot, which makes it a bit tricky to time your entry or exit without accidentally paying over the odds or selling accidentally low. I did this a couple of years ago with an iShares emerging fund and what I learned was that if you wanted to add (or remove) money regularly, you had to watch it all the time else you might accidentally pay way over the odds. This happened to me and it took around 2 years for that bit of the investment to catch up. It seems like this is much less likely to happen with Baillie Gifford and that the growth is much more consistent.
Belagerent
Jonny69
How come Baille Gifford specifically have ended up with outsized exposure? Do they have an "electric cars" fund?