Vantage: BWF – why Stephen Yiu sold Meta and Microsoft but backs Nvidia to the hilt

Blue Whale Growth Fund (BWF) runs a concentrated portfolio of 25–35 high-quality global companies, targeting businesses with sustainable free cash flow generation and explosive growth opportunities. Fund manager Stephen Yiu and his team have delivered 157% returns since launch versus 80% for global peers.

In this Vantage interview, Stephen explains why BWF has completely exited Meta and Microsoft despite their quality credentials, while pushing Nvidia to the maximum 10% position limit. He argues that AI spending by big tech represents a zero-sum game, with Nvidia capturing the benefits while spenders face uncertain returns on capital. The fund has also pivoted into European defence, with Leonardo performing strongly as the EU increases military spending under pressure from Trump’s administration. Stephen discusses why ‘the Magnificent Seven’s magic is largely done’ yet maintains significant US exposure through carefully selected one-of-a-kind companies like Mastercard, Visa and Flutter.

Watch the full interview to understand BWF’s pragmatic approach to navigating Trump’s tariffs, why the team operates from a single Mayfair office where it meets at least four days a week and how it identifies companies exposed to ‘explosive growth opportunities’ in an increasingly challenging macro environment.