The success of Blue Whale fund is benchmarked by Mr Hargreaves against the Lindsell Train Global Equity fund, and the Fundsmith Equity fund.
Both of those are run by individuals, Nick Train and Terry Smith respectively, who had worked at major firms before setting up their own investment management business. Both of those funds are in the same IA Global equity sector as Blue Whale.
Mr Hargreaves said: “They are two shrewd guys. I am a big investor myself in the Lindsell Train fund. I have known Nick Train for 30 years or more, but it took even him a long time to really build up the assets yet he had the track record. Terry Smith did it by being quite aggressive on fund charges at the start and the media loved it.”
Gareth Rudd, a fund manager at Chelverton, who is about to launch the Chelverton European Select fund, said a new fund usually needs to be part of an established fund management company to launch a new fund, as a pre-existing business already has a relationship with platforms.