Billionaire Peter Hargreaves-Backed Fund Offloads Stake In Meta, Microsoft Amid Global Economic Woes

The Blue Whale Growth fund, backed by the billionairePeter Hargreaves,has sold its entire stakeinMeta Platforms Inc.META andMicrosoft CorporationMSFT amid fearsof a global economic slowdown.

What Happened: The decision to exit Meta and Microsoft was announced by the fund’s manager, Stephen Yiu, following U.S. President Donald Trump‘s announcement ofbroad tariffs on April 2, reported theFinancial Times.

Yiu expressed concerns that these tariffs could potentially trigger a global economic slowdown, which would negatively impact Meta’s digital advertising business. He stated, “Whenyou have a global businessin digital advertising and aglobal slowdown and economic uncertainty,then it does impact thetop line [revenues].”

The Blue Whale Growth fund,managing £1.1 billion ($1.46 billion), has massive holdings in technology stocks, accounting for nearly 40% of the portfolio. Meta’s holding represented about 3% of this.

Yiu also revealed that the fund has been buying shares of U.S. chip designer Nvidia Corporation NVDA, raising the stock’s share of the overall fund from 7% at the end of last year to 10%, in order to take advantage of a lower share price.

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Why It Matters: The Blue Whale Growth fund, started in 2017 by Hargreaves, co-founder of Hargreaves Lansdown, holds around £200 million ($265.31 million) from his family. Since Trump’s tariff announcement, Hargreaves Lansdown has reported that its customers have continued to be net buyers of the Magnificent Seven stocks, which represent nearly a third of the S&P 500 by market capitalization.

In early April, UK retail investment platforms Interactive Investor and AJ Bell experienced a surge in trading volumes. Interactive Investor reached its highest-ever trading volumes on April 7, with Nvidia and Amazon AMZN being popular picks. AJ Bell noted an increase in purchases of the Polar Capital Technology Trust, which includes tech giants like Nvidia, Meta, Microsoft, and Apple, highlighting growing interest in tech stocks.

After President Donald Trump announced sweeping tariffs on April 2, the U.S. technology sector has been particularly impacted. Technology Select Sector SPDR Fund XLK dropped 16.86% year-to-date, while VanEck Semiconductor ETF SMH lost 21.5% during the same period.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.