Blue Whale Fund Divests Meta, Microsoft Amid Economic Fears

Blue Whale Capital LLP, managed by Stephen Yiu and backed by UK billionaire Peter Hargreaves, has fully exited its positions in Meta and Microsoft, citing concerns over U.S. tariffs and a potential global economic slowdown that could impact Meta's digital advertising revenues. Additional worries about Microsoft's aggressive push into artificial intelligence potentially overshadowing its cash generation also contributed to the divestment. While Meta previously made up about 3% and Microsoft up to 8% of the fund's portfolio, both have now been sold off entirely. In contrast, Blue Whale has increased its holdings in Nvidia, taking advantage of a recent decline in the chipmaker's share price to boost its stake from 7% to 10% of the portfolio. Despite Blue Whale's exit, analysts remain optimistic about Meta's future, projecting a potential price upside and maintaining a consensus 'Outperform' rating. Technology stocks continue to form a significant portion of the fund's overall assets.