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James Anderson: “Tesla’s rise is a symbol of a revolution in energy”

Scottish Mortgage's managers share their secrets to success
James Anderson: “Tesla’s rise is a symbol of a revolution in energy”

Baillie Gifford’s flagship fund, Scottish Mortgage Investment Trust (SMT), has delivered eye watering returns in recent years. In 2020 alone (to 29 December), the fund’s net assets doubled to over £18.5bn.

In this interview, the trust’s co-managers James Anderson and Tom Slater tell Mary McDougall where the next leg of growth is and how they approach finding the next stock market stars. Mr Anderson says we are entering a period of change unrivalled since the industrial revolution, and they both defend their continued support of Tesla, the fund’s largest holding.

They explain how they approach valuing companies, and why accessing companies when they are private is becoming increasingly important for the fund’s success. They also share their experience of investing in China, where they say innovation is racing past Silicon Valley.  

The interview was carried out remotely and owing to technical difficulties some sections have been re recorded - apologies for sections with poor audio quality, or if parts appear disjointed. 

For a summary of the interview, read Mary’s article: Scottish Mortgage: backing exponential change