Baillie Gifford US Growth Trust today said it had beaten a key benchmark and appealed to shareholders to help fend off a New York hedge fund’s attempt to seize control of the company.
Saba Capital Management last month launch an attempt to install three directors and offer shareholders an option to sell their entire stakes.
In a statement with annual figure, trust chair Tom Burnet said: “Given the uncertainty over the outcome of these resolutions and the potential consequences of any subsequent cash exit, the board has concluded that there is a material uncertainty that may cast significant doubt upon the company’s ability to continue as a going concern in its present form.
“This does not arise from concerns regarding the company’s current financial position or its ability to meet its existing liabilities as they fall due.
“The board strongly encourages all shareholders to read the Notice of Annual General Meeting, which sets out the rationale for the board’s voting recommendations, and to vote in line with those recommendations.”
Saba wants shareholders to appoint Jason Chen, Thomas H McGlade, and James Waterlow.
During the financial year to 31 May 2026, the company’s share price and net asset value (‘NAV’ after deducting borrowings at fair value) returned 44.5% and 31% respectively. This compares with a total return of 29.8% for the S&P 500 Index (in sterling terms).
As at 31 May the company held 27 private company investments which collectively comprised 45% of total assets.
Turnover in the portfolio over the financial year was 23.7% which is consistent with our five year plus time horizon.
Two new private company investments were made: Anthropic and OpenAI.
Twelve listed holdings were added to the portfolio: Alphabet, AppLovin, Axon Enterprise, Broadcom, Circle Internet Group, Coinbase Global, Figma, Knife River, Mastercard, Medline, RBC Bearings and United Therapeutics.
Airbnb, Capital One, Chewy, Datadog, Doximity, Globant SA, Ginkgo Bioworks, Inspire Medical Systems, Penumbra, Pinterest, Roku, Sana Biotechnology and The Trade Desk were listed holdings sold during the period.
Mr Burnet added: “The company’s strategy is to identify and own exceptional American growth companies: businesses that address large market opportunities, possess durable competitive advantages and distinctive cultures, and have the potential to deliver significant share price upside.
“This strategy is delivering results. Furthermore, the manager sees further exciting opportunities for shareholder value creation ahead. AI, automation, space, healthcare and other transformative technologies are creating new markets and new winners. The company is well positioned to capture the best of them.
“Our aim is to find and back the exceptional companies on the right side of change and to be patient with them. Through this lens, our conviction in the portfolio and the outlook for this strategy is as high as ever.
The Annual General Meeting will be held on 23 October at 1pm at the offices of Stephenson Harwood in London.
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