Last Updated on Wednesday, 25 November, 2020 at 12:40 pm by Andre Camilleri
Technology equities took centre stage during MeDirect Bank’s third investment webinar for 2020, with Stephen Yiu, Chief Investment Officer at Blue Whale Capital and Lead Manager of the Blue Whale Growth Fund giving a masterclass on the opportunities that such companies offer in terms of investment returns as well as an overview of Blue Whale’s approach to stock valuation.
The Blue Whale Growth Fund is a global equity fund, focusing on large-cap stocks in developed markets. The Fund was launched in September 2017 and since inception it is one of the best performing funds in the IA Global sector. The five-member investment team, led by Yiu, embraces a high conviction, valuation-driven approach to stock selection. At any given point, the fund will be invested in 25 to 35 individual stocks.
medirectalk is a series of seminars and webinars organised by MeDirect, featuring several financial experts and asset managers sharing their views on market and investment opportunities. Organised jointly between MeDirect Bank and Blue Whale Growth Fund, the latest webinar kicked off with an overview of the stock markets within the current COVID-19 crisis and the US elections outcome.
Yiu said that his team adopts a process whereby high-quality businesses with attractive returns are evaluated, and the portfolio of the fund is limited to 25 to 50 stocks. He said that the Blue Whale Growth Fund consistently outperformed the IA Global Sector average in the last 12 months.
He added that with the onset of COVID-19, the fact that the portfolio retained circa 10 per cent of cash in terms of underlying assets has helped the firm to selectively re-invest such cash into the best companies with attractive valuations and, as a result, managed to provide higher returns already by Q2 2020.
Yiu gave different examples of companies which do form part of the portfolio and others which do not, while explaining the reasons for the firm’s investment decisions. He said Blue Whale’s approach to valuations is based on 100 per cent in-house research, with internal financial modelling and forecasts. Some of the key factors when deciding whether to invest in technology stocks include the low risk of disruption, the sustainable element and low ESG impact, the capability of the management team, the strong business model, the pricing power and levels of high profitability.
The session was a highly interactive one, and various participants asked their questions during a 30-minute Q&A session with Yiu.
For more information on the fund, contact MeDirect on 2557 4400 or on info@medirect.com.mt. In order to view the latest medirectalk session, as well as to past events visit: https://www.medirect.com.mt/invest/medirectalk
The information which was given during this event was provided by Blue Whale Growth Fund. The information contained in this talk is for general information purposes only and is neither intended to provide legal or other professional advice nor does it commit MeDirect Bank (Malta) plc to any obligation whatsoever. The information is not intended to be a suggestion, recommendation or solicitation to buy, hold or sell, any securities and is not guaranteed as to accuracy or completeness. The financial instruments discussed may not be suitable for all investors and investors must make their own informed decisions and seek their own advice regarding the appropriateness of investing in financial instruments or implementing strategies discussed herein.
