comments A star London stock picker known for his lucrative bets on tech giants such as Nvidia has said his £2.7billion Blue Whale fund will avoid the float of Elon Musk’s SpaceX as investors pile into the rocket group. Stephen Yiu told The Mail on Sunday he would ‘sit on the sidelines’ for the flotation, which is predicted to be the largest ever with SpaceX targeting a value of £1.4trillion. He said the firm was ‘likely to be loss-making for the next few years’ and expected it to issue more shares after the initial public offering to fund the firm, diluting the value of stock held by investors. Stephen Yiu told The Mail on Sunday he would ‘sit on the sidelines’ for the SpaceX flotation ‘At Blue Whale we would rather pay a reasonable price for companies that are already highly profitable than a significant premium on the “hope” that SpaceX will make money,’ Yiu said. ‘A bird in the hand is worth two in the bush.’ He conceded that while Musk carried an ‘X-factor’, he would ‘let other investors decide how much of a premium he carries’. Yiu’s comments come after some analysts voiced caution about the rocket and AI firm’s value after a stampede of demand from small investors. Last week, investment management firm Morningstar valued SpaceX at £580billion, noting that its prospects were uncertain and that investors could buy the stock at ‘more attractive levels’ after the float. RELATED ARTICLES