Baillie Gifford Targeted CoStar and Duolingo Shares
The firm sees growth potential in two companies that experienced significant share price declines in 2026.
Updated on Oct. 7, 2026 in Investing
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Investment firm Baillie Gifford has identified CoStar and Duolingo as key growth opportunities for its U.S. equity strategy. The firm is betting on a recovery for these stocks following significant value declines throughout 2026.
Why it matters
The firm expects these companies to rebound after their recent underperformance. Investors often look for such growth opportunities when established holdings experience sharp price corrections over a 12- to 18-month period.
Baillie Gifford identified two specific companies, CoStar and Duolingo, that saw share prices decline over the past 12 to 18 months. The firm projects a future recovery for these assets.
The players
Baillie Gifford
A British investment management firm that provides equity growth strategies and long-term asset management.
Ben James
An investment specialist for Baillie Gifford who oversees the U.S. equity growth strategy.
The details
Baillie Gifford, a British investment management firm, applies a strategy focused on identifying U.S. equities that have faced significant downward pressure. By targeting companies like CoStar and Duolingo that struggled during 2026, the firm aims to capitalize on potential rebounds. This approach typically involves long-term positioning rather than reacting to short-term market volatility.
Timeline
2026: CoStar and Duolingo shares declined in value.
October 5, 2026: Ben James discussed the firm's U.S. equity growth strategy.
Money Landscape
This move follows a pattern set by Baillie Gifford's historical equity growth investment strategy. The firm remains known for its long-term focus on growth-oriented companies even after periods of market decline.
Investors considering similar positions should evaluate whether these growth opportunities align with their own risk tolerance and long-term financial goals. Consult with a qualified financial professional to determine if adding such equity strategies is appropriate for your personal portfolio.
The takeaway
Market volatility can sometimes signal potential entry points for growth-focused investors who look past temporary price drops. If you are reviewing your own portfolio, consider whether you have a clear thesis for why a struggling stock might recover in the long term.
Further reading
Learn more about evaluating market opportunities in our guide to Investing.
Source note: This article includes information reported by Quartz.
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