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GAM Star Alpha Technology

Reasons to Invest

Digital disruption

A huge increase in global mobility, artificial intelligence, robotic machine-to-machine communications and cloud technology show that digitalisation is a huge theme which is here to stay.

Exceptional opportunities

The third generation shift in internet-enabled technologies continues to generate seismic changes, while the market tends to underprice new technologies as each paradigm shift occurs more and more rapidly.

Deepening opportunity set

Established companies are evolving their business models by utilising new technologies, thereby deepening the opportunity for future growth.

Alpha generation

The team believes there is no better area in which to find differentiated stock price performance, in a low growth, highly correlated world. This can be achieved by harnessing the unique long and short opportunities that disruption brings.

Our Edge

Strong sector experience

With over 35 years’ investment experience, the manager has a proven track record in long/short investing and a wealth of global technology expertise.

Skilled stock selection

The team’s ability to recognise the strong polarisation between ‘winners’ and ‘losers’ is the main component of added value.

Flexible

The team seeks to build a well-diversified portfolio across themes, by combining thematic pairs, structural trades and stock specific holdings.

Risk mitigation

Growth investing necessitates particular attention to managing risk, which the team has significant and proven experience in doing effectively. Three levels of oversight and monitoring ensure risk management is embedded in all aspects of the portfolio.

Philosophy and Process

Investment Philosophy

The team believes a flexible approach to investing is particularly well-suited to companies with a strong technology bias, given the rapidly evolving nature of the marketplace. They believe that markets are often irrational, thus the key to success is flexibility in shifting the balance of time allocated to different core investment disciplines to suit prevailing market forces. Therefore, focus should be split between fundamental and technical analysis in order to capture opportunities as the elements that drive markets change over time. This should enable the fund to generate positive returns with relatively low volatility, in all market conditions.

Investment Process

The team’s process focuses on active stock selection to explore both new and established companies within secular growth themes. Using a top-down approach, they identify key themes which focus on disruptive technologies, then explore companies in each theme, combining in-depth fundamental analysis to determine what to buy, and technical analysis to determine when to buy. The resulting global portfolio of 40-70 stocks is diversified across three to five key themes. Long positions are selected according to core investment disciplines (eg intrinsic value, technicals) to protect and enhance returns, while smaller short positions seek to diversify stock-specific risk. The team maintains a strong focus on risk management and examine each risk factor at stock and portfolio level closely through real time monitoring of daily profit and loss metrics, supported by independent risk oversight.

1. Identify themes

  • Apply rigorous research and tech experience
  • Focus on ‘disruptive technologies’

2. Company analysis

  • Blend fundamental and technical analysis
  • Regular intensive company visits

3. Portfolio construction

  • ‘What to buy’ to build a global portfolio
  • ‘When to buy’ to manage stock exposures

4. Risk management

  • Focus on capital protection
  • Three levels of risk oversight

Investment Team

GAM Star Alpha Technology is managed by Mark Hawtin, Investment Director. With over 35 years’ investment experience and 20 years’ long short investing in technology stocks, Mark has proven his ability to generate returns across numerous market cycles.

He is supported by David Goodman, Investment Manager, and Amanda Lyons, Investment Analyst. David is responsible for technical analysis to assist with portfolio construction and risk management and Amanda is responsible for researching and developing stock ideas.

The team applies specialist knowledge and experience in the tech sector to construct a relatively liquid, scalable and diversified portfolio of global companies.

The growth in Internet usage is nothing short of extraordinary. We believe we are in a sustained cycle in technology adoption, with the internet at its heart, which will deliver sharply contrasting fortunes for the winners and losers. This is a perfect battleground for long short investing.
Mark Hawtin, Investment Director

Our Thinking

Investment Opinions 6 min read

WeWork IPO: a blurred line between hype and reality

Tuesday, October 15, 2019

The decision to withdraw the planned IPO of WeWork poses an interesting question of whether technology companies are becoming over-hyped once more. GAM Investments’ Mark Hawtin looks at the recent spate of disappointing IPOs in the technology space and considers whether the wave of irrational capitalism may be coming to an end.

6 min read
Weekly Manager Views 4 min read

Weekly Manager Views

20 September 2019

At GAM Investments’ Weekly Investment Meeting held on 18 September 2019 the speakers were Mark Hawtin, who discussed disruptive growth opportunities, and Ali Miremadi, who talked about the outlook for the global equities market.

4 min read
Investment Opinions 6 min read

Transport as a Service: a disruptive opportunity

3 September 2019

Transport as a service (TaaS) could represent an enormous disruptive opportunity, says GAM Investments’ Mark Hawtin. As the move from private vehicle ownership to vehicle sharing takes hold and efficiencies kick in there are likely to be some big winners and losers.

6 min read

Fund Information

Key Risks

Counterparty Risk / Derivatives

If a counterparty to a financial derivative contract were to default, the value of the contract, the cost to replace it and any cash or securities held by the counterparty to facilitate it, may be lost.

Leverage Risk

Derivatives may multiply the exposure to underlying assets and expose the Fund to the risk of substantial losses.

Currency Risk - Non Base Currency Share Class

Non-base currency share classes may or may not be hedged to the base currency of the Fund. Changes in exchange rates will have an impact on the value of shares in the Fund which are not denominated in the base currency. Where hedging strategies are employed, they may not be fully effective.

Concentration Risk

Concentration in a limited number of securities and industry sectors may result in more volatility than investing in broadly diversified Funds.

Equity

Investments in equities (directly or indirectly via derivatives) may be subject to significant fluctuations in value.

Capital at risk

All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

Resources

Fund Profile - GAM Star Alpha Technology

Contacts

Gam Star Alpha Technology is a sub-fund of GAM Star Fund p.l.c., registered office at George’s Court, 54-62 Townsend Street, Dublin 2, Ireland, an umbrella investment company.