Business & Investment

Blue Whale Growth: My Top Fund in 2021

As we approach 2021, there is no shortage of top funds for investors to consider. Fund Smith And Lindsell Train Global Equity For picks under radar such as Bailey Gifford Global Discovery, Lots of great options.

Personally, my top fund pick in 2021 is Growth of blue whale, Managed by Stephen Yiu. This is a fund that has been working very well since I first invested. 2019 And I hope that it will continue to grow steadily in the future. This is why I am bullish.

Blue Whale Growth: A Confident Approach

The blue whale is a global equity fund that invests with a confident approach. This means that you haven’t invested in many companies. Instead, we only invest in about 30 shares. All of this believes that Yiu has strong growth potential.

What I like about Yiu’s approach is the emphasis on “quality”. Like Terry Smith and Nick Train, Yiu is looking for a profitable, financially strong company with a competitive advantage and strong growth prospects. He avoids unpredictable sectors such as oil and mining. He also avoids banks because he believes the bank’s balance sheet is too complex.

Having been watching this fund closely for over 18 months, I really like the kind of stock that Yiu invests in. Structural trends tend to have strong growth potential, but the risk is not high. Currently, there are some really great names in the blue whale portfolio. For the top 10 holdings Microsoft, Adobe, Amazon,and PayPal.. These are all companies I’m bullish on.

Another thing I like about this fund is that Yiu and his small team of analysts spend a lot of time researching all the shares they hold. For each stock, build a valuation model to better understand the intrinsic value of each company. This means that the focus is on value as well as growth. In other words, it’s a reasonably priced growth approach. Yiu is not afraid to sell stocks that appear to be overvalued. For example, this year he made some profits on Amazon at some stage.

Performance: This fund outperforms Fundsmith

What really impresses me with the blue whale is its performance. This year, the fund was very strong, returning 23.6% between the beginning of the year and the end of November. It is significantly higher than its rivals Fundsmith (16.3%) and Lindsell Train Global Equity (7.4%).

Meanwhile, according to Hargreaves slans downOver the last three years (until December 21st), the fund has returned a very impressive 72%. In contrast, Fundsmith returned 52% and Lindsell Train returned 47%.

My top fund in 2021

Of course, there are risks to consider here.

Currently, there is a strong prejudice in the technology sector. But I’m comfortable with it. After all, we are in the midst of a digital revolution.

Portfolio concentration also adds a higher level of equity-specific risk.

But overall, I think Blue Whale Growth is a very attractive fund. I made it one of my biggest fund holdings, and I plan to continue adding it in 2021.

Edward Sheldon owns shares in Amazon, PayPal, Hargreaves Lansdown, and Microsoft and holds positions in Blue Whale Growth, Fundsmith, and Lindsell Train Global Equity. .. John Mackey, CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s Board of Directors. Teresa Kersten, an employee of Microsoft’s subsidiary LinkedIn, is a member of The Motley Fool’s board of directors. Motley Fool UK owns and recommends shares in Amazon, Microsoft, and PayPal Holdings. The Motley Fool UK recommends Hargreaves Lansdown and recommends the following options: The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, by considering different insights, Better investors than us.

Blue Whale Growth: My Top Fund in 2021 Blue Whale Growth: My Top Fund in 2021

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