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.
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.
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
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.
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.
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.
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.
Derivatives may multiply the exposure to underlying assets and expose the Fund to the risk of substantial losses.
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 in a limited number of securities and industry sectors may result in more volatility than investing in broadly diversified Funds.
Investments in equities (directly or indirectly via derivatives) may be subject to significant fluctuations in value.
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.
