Tim Campbell, CEO, Baillie Gifford,

As with any investment, capital is at risk. 

Baillie Gifford’s new chief executive, Tim Campbell, faces a paradox: the company must evolve to remain true to its investment philosophy. New technologies and changing client needs mean standing still isn’t an option. So, the firm’s mission is to be progressive in its methods but conservative in sticking to its purpose.

“If you go back to first principles, the investment industry is here to make discretionary decisions around allocating people’s savings to businesses that are driving progress and creating jobs,” says Campbell. “That’s the core of what we do.”

But, he adds, the industry’s priorities increasingly lie elsewhere. Passive tracker funds, which simply replicate a stock market index or other benchmark’s performance, are gaining in popularity. 

“Passive investing has its place,” he says. “But if you have fewer market participants trying to meet with management teams, understand what they’re trying to achieve and investing in their research capability – actually trying to match up savings capital with ideas – then you get to quite a bleak endpoint.”

‘Think in decades, not quarters’

If Baillie Gifford’s active, human-led style better serves society’s needs, its first loyalty remains to those who entrust it with their savings.

“Ultimately, we’re here to find the best growth businesses on the planet for our clients and deliver exceptional returns,” says Campbell. “That starts with adopting a long-term, optimistic mindset. When our investment teams first discuss a company, they consider what might go ‘really right’ before exploring the potential pitfalls. Then, if they decide it has a credible path to success, they encourage its management to prioritise ambition, adaptability and execution over short-term gains.”

Baillie Gifford invests on the basis that share prices follow earnings growth over the long term, and that the best way to deliver outperformance is to find and retain ownership of the companies contributing most to progress.

“If you think about the stocks that have been the largest contributors to our clients’ performance, they will commonly have seen their share prices fall by over 50 per cent or more at times. Amazon, NVIDIA and MercadoLibre have all experienced that pattern. It’s been very important to have ‘hold discipline’,” Campbell explains.

This conviction-led approach means Baillie Gifford’s portfolios differ markedly from the benchmarks it uses for comparison. And the extended holding periods help minimise transaction costs, resulting in lower fees.

Private company investments

While some things remain constant at the firm, others are changing. 

“Growth companies are floating on stock exchanges later in their lives, if at all. To provide our clients with the exposure they want, we must invest earlier,” says Campbell.

Of the companies in the US generating more than $100m of revenues, 83 per cent are private, and that profile is mirrored globally. “The more we can be part of giving as many people access to these companies, the better,” he adds.

Recent deals include stakes in two of the leading artificial intelligence startups – Anthropic, the maker of the AI assistant Claude, and Runway AI, which specialises in video generation tools for film studios and others. 

“Speaking to Anthropic, Runway and others at the forefront of AI is vital for both our public and private investment work on how the technology could disrupt different industries and sectors,” Campbell explains.

AI-augmented investment research

Baillie Gifford is also a keen adopter of AI. This includes developing a proprietary platform that integrates the firm’s many thousands of in-house research notes and write-ups of conversations with companies and academic experts, as well as external insights, company filings and other materials.

“The nature of our firm is that we’re always trying to get better, always trying to improve,” Campbell says. “This is a period of colossal change. And typically, we’ve done a very good job of delivering during periods of significant disruption.”

Tim Campbell

Managing Partner, CEO

Tim became managing partner and chief executive in April 2025, having been a partner of the firm since 2012. Tim joined Baillie Gifford in 1999 and graduated BA in History from Trinity College, Dublin in 1997.

For more information, visit Baillie Gifford’s website.

Important information 

This article does not constitute, and is not subject to the protections afforded to, independent research. Baillie Gifford and its staff may have dealt in the investments concerned. The views expressed are not statements of fact and should not be considered as advice or a recommendation to buy, sell or hold a particular investment.
  
Baillie Gifford Investment Management (Europe) Ltd (BGE) is authorised by the Central Bank of Ireland as an AIFM under the AIFM Regulations and as a UCITS management company under the UCITS Regulation. BGE also has regulatory permissions to perform Individual Portfolio Management activities. BGE provides investment management and advisory services to European (excluding UK) segregated clients. BGE has been appointed as UCITS management company to the following UCITS umbrella company; Baillie Gifford Worldwide Funds plc. BGE is a wholly owned subsidiary of Baillie Gifford Overseas Limited, which is wholly owned by Baillie Gifford & Co. Baillie Gifford Overseas Limited and Baillie Gifford & Co are authorised and regulated in the UK by the Financial Conduct Authority.