Blue Whale prepared to sell long-term holding Adobe if it fails to tackle 'AI opportunity'

Former top ten holding

Eve Maddock-Jones
clock • 4 min read

Stephen Yiu may sell out of long-term holding Adobe if the company is unable to grapple with the developments of AI.

Speaking at the fund's annual meeting, Yiu said the stock's future was a source of "constant debate" within the investment team, which is actively discussing whether if AI is going to be a "threat or an opportunity" for the stock. Blue Whale has held Adobe since the fund launched in 2017 and originally had it as a top ten position. However, the team has become less optimistic about the potential returns of the stock in recent years and have steadily reduced its position. In 2022, Adobe fell out of the top ten. "We have a bit of concern valuation seems attractive," Yiu said, noting ...

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