Founded in 2016, Blue Whale Capital is a global equity specialist based in London and manages the LF Blue Whale Growth Fund, a global strategy unconstrained by geography. It selects 25 – 35 stocks at a time, which allows it to invest only in what its research and analysis identify as the best companies. The firm looks to buy companies that will benefit from structural growth trends, are able to significantly grow profits over time, yet also have attractive valuations. They have a long-term horizon and would like to buy a company and hold it forever but understand that sometimes the valuation becomes too expensive or the company’s prospects change.
Stephen Yiu is the co-founder of Blue Whale Capital. He is also Chief Investment Officer and Lead Manager of the LF Blue Whale Growth Fund. He was previously at Nevsky Capital (2014 – 2016) and before that at Artemis (2009 – 2013) and New Star (2007 – 2009). Before that he was a fund manager at Hargreaves Lansdown (2002-2007). Peter Hargreaves, is the Chairman and co-founder of Blue Whale Capital, as well as the co-founder and the largest shareholder of Hargreaves Lansdown, a $12 billion FTSE 100 financial services company.
Your performance since launch in September 2017, has been described as “phenomenal” – how do you explain this success?