Generating alpha against the benchmark is the gold standard in the hedge fund industry, and it’s much easier said than done. However, Stephen Yiu, lead manager of Blue Whale Capital’s flagship Blue Whale Growth Fund, has more than doubled the return of average global funds, at 244% versus 107%, and returned almost 100% more than the MSCI World Index (244% versus 154%).
In an interview with Hedge Fund Alpha, Yiu shared details on his strategy, why he thinks a concentrated portfolio is better, and how they research new ideas.
Background on Stephen Yiu
Born in Hong Kong, Yiu says he had a very international journey, leaving the city when he was 12 and moving to Singapore for his secondary education.
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His first stock was Starbucks. As it started to expand into Asia, the coffee-shop chain went to dual-list in Hong Kong after already being traded in the U.S. At the time, Yiu loved Starbucks, although probably not as much as he does today. Of course, Starbucks has done very well, and Yiu has made money on it.
He went to the U.K. when he was 16, now having been there for over 30 years. Yiu attended university in the U.K. and began his career there over 25 years ago, working with Peter Hargreaves at Hargreaves Lansdown, the largest investment platform in the U.K.
Hargreaves recently stepped down from the firm’s board. He’s also co-founder of and a partner in Blue Whale Capital, providing the initial £25 million in seed capital to launch the fund in September 2017.
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