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Blue Whale's Stephen Yiu Outlines Hedges for a Possible AI Spending Bust

October 2, 2026 at 17:25 EDT

Infra & Chips
Finance

Blue Whale Growth Fund Chief Investment Officer Stephen Yiu has laid out a hedge for an AI disappointment: stay exposed to companies already being paid to build the infrastructure, but pair them with holdings in gold mining, defense, energy, refining and obesity drugs. The thesis separates speculative model-company valuations from listed suppliers whose AI revenue is showing up now.

September 28, 2026 | Blue Whale

Hedging an AI bust

A concentrated growth fund is keeping AI infrastructure exposure while adding gold, defense, energy, refining and GLP-1 holdings as shock absorbers.

320%+

Fund return since launch

<130%

Benchmark return

$2.59T

Forecast 2026 AI spending

18 mo.

Infrastructure visibility

Return gap since launch

Each stacked segment represents about 10 percentage points.

320%+

Blue Whale fund

under 130%

Benchmark

Why the frame resonates

Infrastructure suppliers are already being paid, and long commitments can keep earnings visible even if model-company economics stay uncertain.

What could break it

If AI revenue lags capex, chip depreciation, quantum alternatives or a Taiwan shock could turn the earnings story fragile.

The hedge basket

The non-AI buffers named in the strategy sit outside the direct model-and-chip spending loop.

Gold miningDefenseEnergy and refiningGLP-1 healthcare

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