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Frequent Contributor

VWIGX/VWILX and Baillie Gifford

If you are watching TSLA rocket move on a classic short-squeeze, beware that #2 TSLA owner Baillie Gifford [UK] is INCREASING its TSLA stake. Baillie Gifford is also the 2nd manager for aggressive VG International Growth VWIGX/VWILX [AUM $40.9 billion] with 30-40% assets and TSLA was #11 as of 12/31/19 - in the next portfolio reporting, I am sure it would be within Top 10 [33.80% of portfolio as of 12/31/19]. 

Aggressive VWIGX/VWILX has provided a good ride so far but I am switching some to more conservative global and currency-hedged VMVFX/VMNVX. And today is a good day to do this.

TSLA   https://stockcharts.com/h-sc/ui?s=TSLA&p=D&yr=0&mn=6&dy=0&id=p12339265358

VWIGX   https://stockcharts.com/h-sc/ui?s=VWIGX&p=D&yr=0&mn=6&dy=0&id=p02640750954

News   https://finance.yahoo.com/m/fbd45b2d-a7b5-3939-a669-59fce205cee1/tesla%26%2339%3Bs-stock-shoots-up.h...

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Re: VWIGX/VWILX and Baillie Gifford

The link you provided does not tell you when he purchased the shares. 
Its a quarterly disclosure that he is a controlling stockholder in TSLA. 
He could have purchased TSLA last quarter and with the dramatic rise in PPS he could be selling now. 
If he purchased in October when TSLA was trading around $250 he would be an idiot not to lock in profits in the $900 range.

Also, Musk took out a bank loan to purchase TSLA shares in $325-$350 range. 
Maybe he will sell and payoff the loan and lock in some profit?
No one knows until the Form 4 filed.  

There are always two sides of a trade. 
That's what makes a market. 
Here is Andrew Left's position on TSLA.

https://www.marketwatch.com/story/tesla-casino-lures-back-famed-short-seller-2020-02-04

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Frequent Contributor

Re: VWIGX/VWILX and Baillie Gifford

Info lag for holdings is unavoidable. FWIW, I reduced VWIGX meaningfully, not eliminated it.

Institutions & funds holding decent chunk of TSLA,

https://money.cnn.com/quote/shareholders/shareholders.html?symb=TSLA&subView=institutional

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Participant ○○○

Re: VWIGX/VWILX and Baillie Gifford

The timing of your overly “DRAMATIC” post seemed to indicate that there was a correlation between the recent SEC disclosure of Baillie Gifford & Co holdings (an increase) with the dramatic rise in TSLA stock price in the last couple days. I was only saying nobody knows exactly when they purchased shares during the quarter and an informed investor should know that. Now that the 3 day “pump” is over, TSLA is down 18% today...

Also, to say this was caused by a short squeeze (which the media claimed too) is incorrect. The amount of shares short have been decreasing over the past year and it at a LOW not a high.

https://www.nasdaq.com/market-activity/stocks/tsla/short-interest

Fidelity had over 8 million shares available to short...

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Re: VWIGX/VWILX and Baillie Gifford

@yogibearbull I did something of the opposite. I dumped VMNVX in April since it seemed not to have done what it was supposed to. As part of a "shift-to-growth portfolio" makeover I bought VWILX, and added to it several times thereafter. I even added some more last week.

Tesla is now around $1500 (after brushing up against $1800 earlier). But the fund's traders can surely sell a highly liquid stock like this in seconds, and I'm in no position to second guess them. Average daily volume is 14 million shares or $21 billion. Note that TSLA is 5.1% of VWILX per 6/30 stats. That's a healthy holding, but even a 10% move in one day would only affect the fund by 1/2% (and the managers could react if they chose to).

Wondering if, subsequent to your posting here, you decided to maintain, or reduce, or increase your position? You've owned the fund much longer than I have, so any thoughts appreciated. It is now my largest equity holding, but as I am inclined to increase foreign exposure now more than US exposure, I am considering buying more on dips. TIA.

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Re: VWIGX/VWILX and Baillie Gifford


@chang wrote:

@yogibearbull I did something of the opposite. I dumped VMNVX in April since it seemed not to have done what it was supposed to. As part of a "shift-to-growth portfolio" makeover I bought VWILX, and added to it several times thereafter. I even added some more last week.

Tesla is now around $1500 (after brushing up against $1800 earlier). But the fund's traders can surely sell a highly liquid stock like this in seconds, and I'm in no position to second guess them. Average daily volume is 14 million shares or $21 billion. Note that TSLA is 5.1% of VWILX per 6/30 stats. That's a healthy holding, but even a 10% move in one day would only affect the fund by 1/2% (and the managers could react if they chose to).

Wondering if, subsequent to your posting here, you decided to maintain, or reduce, or increase your position? You've owned the fund much longer than I have, so any thoughts appreciated. It is now my largest equity holding, but as I am inclined to increase foreign exposure now more than US exposure, I am considering buying more on dips. TIA.


I have moved on from VG Intl Gr. I had a good ride. I had been concerned by its concentrated style and TSLA among its top holdings [actually, the news then was that the Fund was among top 2-3 holders of TSLA, period] was just the final trigger - TSLA isn't even a foreign stock [may be it is for Fund's UK based manager but for me that didn't count]. That money finally ended up in VG Global Wellington.

I am also out of VG Global Min Volatility. That money also went into VG Global Wellington.

TSLA is now in many US funds - total market index has 0.53%, extended market index has 3.26%, domestic growth funds also have it in varying degree. There is pressure on S&P to include TSLA in SP500 as it recently met the condition of 4 quarters of profitability and that anticipation may be behind its recent run up.

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Re: VWIGX/VWILX and Baillie Gifford

Thanks @yogibearbull. I’ve been adding to VG Global Wellington since the start of the year. Glad to know I’m not the only one.

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Re: VWIGX/VWILX and Baillie Gifford

You're watching the official music video for Hootie & The Blowfish - "Hold My Hand" from the album 'Cracked Rear View' (1994). "Hold My Hand" features a back...
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Re: VWIGX/VWILX and Baillie Gifford


@yogibearbull wrote:
I have moved on from VG Intl Gr. I had a good ride. I had been concerned by its concentrated style and ..... That money finally ended up in VG Global Wellington. I am also out of VG Global Min Volatility. That money also went into VG Global Wellington.

@yogibearbull Yogi, is this a deliberate shift from foreign growth to value (apart from specific concerns about VWILX/TSLA)?

I did the opposite this year—sold foreign value (DODFX and VMNVX) and shifted to growth (VWILX / APDYX / MATFX). Having lived abroad since 1998 except for three years in NY, my perception is that foreign investors are more focused on growth than traditional value metrics or dividends. I’m not saying foreign investors are less sophisticated than US investors, but I rarely hear people talk about P/B, P/E, cash flows, dividend yield, etc. All I hear is talk about new products, new markets, etc. Hence, my foreign exposures now are exclusively “growth”—except for VG Global Wellington, which I have also been buying this year.

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Re: VWIGX/VWILX and Baillie Gifford

VWILX is on fire. How does it go up 0.72% on a day like this? The US market had a ho-hum day, so you can’t pin it on fair market value pricing.

chang_0-1597794133904.jpeg

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Re: VWIGX/VWILX and Baillie Gifford

TSLA breaks $2000. Who (besides Ron Baron) knew it was a bargain at $1500 (and a screaming buy at $900).

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Re: VWIGX/VWILX and Baillie Gifford

Again, VWILX rose 0.27% against this backdrop:

chang_0-1597967681732.jpeg

I added a little to my position today (expecting a drop, not a rise .... but it doesn’t matter in the long run).

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Participant ○○○

Re: VWIGX/VWILX and Baillie Gifford

“and a screaming buy at $900”

Try going long and ride it into the split.

Unlike many posters on M* who claim they can never have a losing trade, I post all my buys & sells along with their profit/loss. No one else here does that.... 

i have a few more profitable trades that will be posted next week so stayed tuned...

 

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Re: VWIGX/VWILX and Baillie Gifford

Are any owners adding on dips or gently DCAing?

Right now I’m more comfortable adding to foreign over US equity, and foreign growth over foreign value. VWILX, MATFX/MITEX and ARTYX/APDYX are all trending up.

There aren’t a whole lot of diversified Foreign LCG funds, and even few lost-cost ones. VWILX seems to be one of the very few. (With the caveat that it has 14% US exposure.)

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Explorer ○○

Re: VWIGX/VWILX and Baillie Gifford

chang -

I've been following your recent reallocations, not only on the global/int'l front (sacking DODFX, VWIGX), but also with Wellesley and Global Wellington.  I've held Wellesley and Wellington since 2005.  Same with Global Equity (VHGEX), which is presently half-Baillie Gifford-run and currently 50% U.S., 44% non-U.S.  VHGEX and DODFX comprise my global/int'l category.  I'm considering portfolio changes, including folding DODFX into my other D&C holdings (also long-held), essentially using DODBX and DODIX to approximate Wellesley's conservative allocation but in a D&C wrapper. 

I'm also considering reducing small/midcap over-allocation by folding Strategic Equity (VSEQX) and splitting it between Global Equity and Wellesley, approximating Global Wellington's balanced allocation, but retaining some manager diversification since I have plenty of Wellington Management already.  Dan Weiner still has a "buy" rating on VHGEX and it's been a good performer since VG assigned half of the fund to Baillie Gifford and half to Marathon Asset Mgmt. several years ago.  This move would also avoid opening a new and/or somewhat duplicative fund (either of the Global W's) as I whittle down a baker's dozen of funds.  

Looking at M*'s reports of non-U.S. equity holdings in my VG and D&C balanced/income funds together with my Primecap funds, another thinning-the-herd move would be to fold Global Equity into Wellesley.  Along with the above-mentioned DODFX and VSEQX folds, folding VHGEX would eliminate yet another fund in the portfolio, rid me of global/int'l funds quandaries at least for now, reduce duplication and over-representation of equity holdings even further, and steer the portfolio towards a more conservative sequence-of-returns allocation, an increasingly attractive target as I approach age 70 and full-blown SS next year.

Your recent moves and comments - supplemented by yogi's observations - clearly got my gears grinding after several years of portfolio design stasis and occasional paralysis-by-analysis.  Thanks, I needed that.

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Re: VWIGX/VWILX and Baillie Gifford

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Re: VWIGX/VWILX and Baillie Gifford

@Avvocato “I've been following your recent reallocations, not only on the global/int'l front (sacking DODFX, VWIGX), but also with Wellesley and Global Wellington.”

Just to clarify, I did indeed dump DODFX, but I started buying VWILX in April/May (don’t recall exactly) and have made multiple buys since.

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Re: VWIGX/VWILX and Baillie Gifford

Thanks, chang.  I re-read the earlier posts re your DODFX dump and yogi's VWILX dump. Sure enough, it looks like I lumped both dumps in your yard alone.  Please consider them reattributed.

Dan Wiener is a Baillie Gifford fan (as he was with Schroders on VWIGX/LX for much of the past decade) and has had "buy" ratings on VWIGX/LX for several years and on VHGEX for at least a year. 

I see Global Wellington is now getting full M* coverage, including a recent analyst report.  I assume Global Wellesley may get similar coverage at some point.  Dan Wiener currently has a "hold" rating on both funds (due to their relative youth).  Your move out of DODFX into VWILX and yogi's move out of VWILX into VGWAX obviously caught my attention.  Many paths to Dublin.

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Re: VWIGX/VWILX and Baillie Gifford

I reviewed my post from 3 was ago and have nothing new to add. VWIGX/VWILX has continued to do well after I got out of it weeks ago. But I am not missing on US tech highflyers that are in my US LC-gr funds. I just didn't want them through my international fund.

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Re: VWIGX/VWILX and Baillie Gifford


@Avvocato wrote:

Thanks, chang.  I re-read the earlier posts re your DODFX dump and yogi's VWILX dump. Sure enough, it looks like I lumped both dumps in your yard alone.  Please consider them reattributed.

Dan Wiener is a Baillie Gifford fan (as he was with Schroders on VWIGX/LX for much of the past decade) and has had "buy" ratings on VWIGX/LX for several years and on VHGEX for at least a year. 

I see Global Wellington is now getting full M* coverage, including a recent analyst report.  I assume Global Wellesley may get similar coverage at some point.  Dan Wiener currently has a "hold" rating on both funds (due to their relative youth).  Your move out of DODFX into VWILX and yogi's move out of VWILX into VGWAX obviously caught my attention.  Many paths to Dublin.


@Avvocato : actually, I have also been adding to VGWAX since the beginning of the year. So I have Foreign LCV from VGWAX and LCG from VWILX. However, my foreign LCG exposure greatly outweighs my LCV exposure, because I have ample foreign LCG exposure from several EM funds.

I don't know anything about VHGEX. But a brief glance at M* shows it holds 560 stocks, with all but 2 holdings < 2%. That seems awfully indexy to me. The fund is fairly cheap, but nowhere near as cheap as index funds < 0.05% ER. Although according to M* it has managed (slightly) to stay ahead of its benchmark and the category average.

I prefer to keep foreign and domestic funds mostly separate, as well as stocks and bonds. (VGWAX is my only exception, and it's obviously a big exception since it holds US and foreign stocks and bonds.) Hence, VHGEX doesn't hold a great deal of appeal for me.

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