Peter Hargreaves has shot down claims that Blue Whale is speculative, as the Growth fund doubles its initial investments in less than four years.
The claims relate to Blue Whale’s major holdings being considered as ‘speculative technology’ stocks.
Hargreaves (pictured right) said: “It is true many of the major holdings have harnessed technology, but purely to enhance their businesses. Alphabet (Google) uses advanced algorithms to enhance users’ searches and to deliver targeted advertising. Amazon is the world’s greatest retailer and uses every bit of tried and tested technology to augment all facets of its business.
“Neither of these companies could be described as speculative tech businesses. Their market leading positions in their respective fields afford massive pricing power if inflation becomes a reality.”
Hargreaves family has over £200m of skin in the game
In the update Hargreaves also revealed his family has more than £200m tied up Blue Whale. Hargreaves seeded the Growth fund, run by Stephen Yiu (pictured left), with £25m when it launched in 2017.
Hargreaves said: “There has been comment recently about fund managers investing in their own funds. Apparently in America this is divulged. I notice the proprietor of another of the UK’s successful funds voluntarily reveals he has £200 million invested in his fund. The Hargreaves family has just over this amount invested in Blue Whale.”
Last year amid the coronavirus pandemic the Growth fund tripled in size as its bias toward US equities and tech enabled businesses paid off. Currently assets in the fund stand at £863.8m.
Off the back of its rapid growth Blue Whale has looked to boost its headcount, recently hiring Tom Skinner from Artemis.
Last month Portfolio Adviser revealed Yiu was mulling the idea of launching an investment trust to tap into smaller companies.
See also: Blue Whale testing the waters with investment trust launch to tap into smaller companies
