The investment fund understands the value of thinking long-term and backing winners
Thursday’s biggest faller in the FTSE 100 index was Scottish Mortgage Investment Trust, a wholly unsurprising move on a day the technology-heavy Nasdaq took a tumble. The trust’s portfolio is itself long on tech and innovation, led by the likes of Amazon and Tesla.
Indeed, this week brought news that Baillie Gifford, which manages the £14bn Scottish Mortgage fund, has had to trim its Tesla stake for the pleasing reason that the shares have almost performed too well. The sixfold increase in Tesla’s stock price this year meant concentration limits on individual funds were being busted. Thus a few Tesla shares had to go, albeit Baillie Gifford still has 4.3% of the electric car company.