“The kicker is that online penetration for this category is still in the low single digits now that will shortly go up over the next five or 10 years,” Bujnowski said. “The hyper connected network isn’t confined to the so called Faang stocks, it’s everywhere and it sets the table for more outliers to emerge and we suspect some are still just germinating,” said Dave Bujnowski, another co-manager on the fund.īujnowski said companies moving toward hyper connected infrastructure include online marketplaces for used cars like Caravana and Vroom which offer shoppers a better selection, better prices and delivery to your driveway. The managers said they were finding more opportunities in developing sectors such as e-commerce, biotech and cloud services.Į-commerce makes up just 15% of all retail in the US, with some large categories which have still not made the transition online, leaving plenty of room for growth, they said. By the end of January the pair had sliced their 6.2% holding in Amazon to 5.6% and cut their position in Google parent Alphabet from 2.8% to 2%, pushing the tech giant out of their top 10 holdings. Slater and Robinson have generally been reducing their positions in Faang holdings. The £19.1bn trust endured a two-day slump this week, with shares diving as low as 10% on Tuesday, after Tesla was caught up in a sell-off thanks to comments Musk made over the weekend over the high valuations of bitcoin. Scottish Mortgage, which is also run by Slater and Baillie Gifford heavyweight Anderson, also halved its exposure to the EV company in January.
Tesla’s shares have risen by 900% since the start of 2020, prompting concerns it is in bubble territory.īaillie Gifford American is one of 11 funds in the Edinburgh fund group’s stable to cut its exposure to Tesla in the last month. Slater (pictured) explained during a recent webinar the decision to ditch Tesla shares “reflects the more challenging maths of making at least two and a half times our money from today’s starting market capitalisation of hundreds of billions of dollars than was the case a year ago”. Baillie Gifford American managers Tom Slater and Gary Robison have joined colleague James Anderson in slashing exposure to Tesla, a situation which reflects the “challenging maths” of trying to more than double their returns as the company’s valuation balloons.Įlon Musk’s electric car company made up 8.4% of the £7.4bn fund at the end of December but a month later that had been pared back to 5.1%.
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