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GAM STAR DISRUPTIVE GROWTH*

Reasons to Invest

Technology is everywhere

The last decade has seen technology move from being a vertical dominated by software and hardware vendors, to an economic horizontal, where the way technology is used is far more significant than the technology itself.

Disruptive power

The network effect, coupled with new and fast-growing technologies such as artificial intelligence, the internet of things, big data and blockchain, will drive the disruption of technology across sectors, resulting in a wealth of opportunities for experienced investors.

Deepening opportunity set

Established companies are developing disruptive, competitive new models across every sector in consumer and enterprise, and increasing their own growth opportunities by utilising new technologies.
*Fund has been renamed to GAM Star Disruptive Growth on the 20 Jan 2020 (Previously named GAM Star Technology)

Our Edge

Strong sector experience

With over 35 years’ investment experience, the manager has a proven track record in technology investing and a wealth of expertise in both tech-orientated and non-tech orientated growth stocks.

Unconstrained, active approach

The team uses a global growth index to invest in a wide range of companies, as the most effective way of generating outperformance in a rapidly evolving sector.

Skilled stock selection

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

Risk mitigation

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

Philosophy and Process

Investment Philosophy

The team believes a flexible approach is particularly well-suited to investing in ‘disruptive growth’, given the rapidly evolving nature of the marketplace. It believes 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.

Investment Process

The team’s process focuses on active stock selection in order to identify growth opportunities and disruptive themes. It seeks to identify themes centred on change and innovation, which provide the richest source of opportunities in the fast-changing ‘disruptive growth’ space, while also considering the nature and evolution of true ‘growth’ companies. The team explores the most promising companies in each sector, combining in-depth fundamental analysis to determine what to buy, and technical analysis to determine when to buy, which are combined to form a global portfolio of 40-60 stocks diversified across three to five key themes. It maintains a strong focus on risk management and examines 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 experience to find companies with a growth focus
  • Focus on companies with disruptive, competitive new models across sectors

2. Analyse companies

  • 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 Disruptive Growth is managed by Mark Hawtin, Investment Director. With over 35 years’ investment experience and 20 years’ global long only and long / short investing in technology stocks, Mark has proven his ability to generate returns across numerous market cycles.

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

The team applies specialist knowledge and experience to companies and sectors whose business models are driven by new technologies, to construct a liquid, scalable and diversified portfolio of global companies.

Ultimately, technology is no longer about what technology is. It is about the way technologies and newer iterations are used in the creation of business models and enterprises that leverage the investment in these ‘raw materials’ to deliver many times higher returns.
Mark Hawtin, Investment Director.

Our Thinking

Investment Opinions 6 min read

Technology is everywhere

21 January 2020

When no industry is immune to disruption, can the tech sector exist within its own vacuum? GAM Investments’ Mark Hawtin considers the omnipresent nature of today’s technology and questions the effectiveness of current benchmark indices.

6 min read
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

Fund Information

Key Risks

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.

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.

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.

Resources

Fund Profile - GAM Star Disruptive Growth

Risk management at GAM

Contacts

GAM Star Disruptive Growth 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.