Greek loans, Polish denim, German cookers: the new shape of European growth

Joe Faraday, Head of European Equities at Baillie Gifford, outlines a revitalized investment strategy centered on broadening growth definitions across the diverse European landscape. By treating Europe as a collection of distinct markets rather than a monolithic entity, the approach prioritizes active stock picking and rigorous portfolio construction. Key investments like Rational, TotalEnergies, and Rheinmetall demonstrate a focus on companies driving structural shifts in automation, energy transition, and strategic defense. Faraday emphasizes the necessity of long-term commitment paired with strict sell discipline, often validated by on-site management meetings to assess operational agility and cultural health. This strategy moves beyond traditional growth models, leveraging deep research into companies like LPP and Piraeus Bank to capture value in evolving sectors, while maintaining a disciplined, evidence-based framework for navigating market volatility and regulatory pressures.