By Steve Goldstein
This story has been updated to fix the spelling of the fund manager's name.
Amazon.com has been a holding for four years in the Blue Whale Growth fund, one of the highest-profile U.K. funds that invests in U.S. companies.
Not any longer. Fund manager Stephen Yiu told MarketWatch sister publication Financial News that rising inflation made him uncomfortable with owning Amazon (AMZN). "We've never liked the retail business, and now we like it even less because of the inflation narrative," he said.
Read the full FN.com story on the Blue Whale stake sale
The Labor Department on Wednesday reported that consumer prices shot up 7% in the 12 months ending December.
Yiu also said Walmart (WMT) and others have stepped up their e-commerce game due to COVID.
On Amazon's other key business, cloud provider AWS, Yiu said the growth potential of Microsoft (MSFT)and Alphabet (GOOGL) unit Google were higher. Both Amazon rivals are top ten holdings of the fund.
Amazon shares have climbed 6% over the last 52 weeks, underperforming the broader S&P 500 that has gained 24%.
(END) Dow Jones Newswires
January 13, 2022 08:59 ET (13:59 GMT)
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