Buy Monks get the best Baillie Gifford


#1

Originally published at: http://whichinvestmenttrust.com/buy-monks-get-the-best-of-baillie-gifford/
A new management team has been in place since March but they’re enacting an investment strategy that whilst new to Monks has worked very well elsewhere for over a decade. I met up with the managers to learn more about what they are doing with this venerable trust. Fast Facts Long established founded in 1929…


#2

I’m surprised at how big Baillie Gifford is. I thought they were little firm.

This sounds like an interesting investment. One sentence that stood out to me was the invest, forget about it for several years because that’s what I want to be able to do.

I like the passion you talked about form the managers, you really put across well if I might say but the only thing I’m wondering is as the discount has shrunk a lot in the last couple of weeks or however long it has been, should I wait a little while longer for it to widen again because the article did say it was volatile too?


#3

Well you missed the other point they made @delorismm about the discount not being the reason for the long term returns. If you’re buying it, or considering buying it to hold for the long term you shouldn’t be concerned about the discount coming in a little because that will only make a small impact upon long term returns.

I have previously been a holder of this trust but it’s performance was pretty dismal for a while. I hadn’t been following it lately so it is encouraging to learn about the recent changes.

It sounds like a much more interesting investment though in the short term one would worry about how expensive stocks have become. I am inclined to agree that this does look like a very tempting investment for those who can hold it long term. I may even be tempted myself.


#4

It feels to me that this may be a good investment to buy right now, whereas everything else, or rather stock markets elsewhere are expensive.

Only caveat form this article is Monks will be volatile, meaning I suppose in this context that it’s drop its drawers quicker than a ******** (well I can’t really say that can I).


#5

It sounds like they’re serious about turning this around. I’ve been looking for a home for some of the cash in my SIPP, I’ve gonna give this a go.

It’s a great concept to get the best of Baillie Gifford and the performance of the fund it’s mirroring is good and just what I want.

I don’t mind that it’ll be volatile at times, I’m decades away from retirement yet.


#6

It won’t be the discount that’s responsible for most of your returns @delorismm it’ll be the performance of the underlying investments, so I wouldn’t overly fuss over the level of short term discount it’s on.

I agree the new Monks look really interesting, and Baillie Gifford are clearly throwing a lot at this, with three of their top Musketeers managing it.