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GAM STAR DISRUPTIVE GROWTH

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GAM Star Disruptive Growth is a long only equity fund seeking long-term growth opportunities across sectors whose business models are driven by new, disruptive technologies. Experienced investor, Mark Hawtin, and team use the omnipresence of today’s technology to actively invest in winning companies with disruptive characteristics and substantial potential for growth.

Our Edge

Experience and knowledge are key

Citywire-AA rated Investment Director, Mark Hawtin, has over 20 years’ experience investing in disruptive technology across all parts of the hype cycle. The highly experienced team has over 50+ years combined experience and a strong track record of delivering client alpha in the sector.

Focus on Fundamental analysis

The team is dispassionate, focusing on detailed fundamental analysis to avoid overhyped stocks in specific parts of its investable universe and maximising opportunities for alpha. Intrinsic Valuation sits at the heart of the team’s investment process.

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 this rapidly evolving sector.

Active risk management

Emotional detachment is more important in this part of the market than any, as irrational exuberance can catch hold of growth names. Active risk management is key to managing position sizes and taking action at extremes of price, both high and low.

Investment Team

GAM Star Disruptive Growth is managed by Mark Hawtin Investment Director. With 37 years’ investment experience as a fund manager and over 20 years’ experience investing in the disruptive growth and technology sectors, Mark has proven his ability to generate returns across numerous market cycles.

He is supported by David Goodman, Investment Manager,  Wendy Chen, Senior Investment Analyst and Pieran Maru, Investment Analyst. David is responsible for technical analysis to assist with portfolio construction and risk management, while Wendy and Pieran research and develop stock ideas. The team is further supported by a team of three traders, led by Graham Hedges, Head of Equity Trading.

The investment team applies its specialist, in-depth knowledge to identify those companies that are both innovating with force and profoundly changing the way we live and work.

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.

Philosophy and Process

Investment Philosophy

The investment philosophy is driven by the team’s conviction that it can generate client alpha by investing in disruptive technology-driven growth, which can be found in all sectors. Emotional detachment is critical and the strategy is founded on detailed, dispassionate fundamental analysis to avoid hype and maximise capture of alpha.

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

Reasons to Invest

Opportunities across multiple sectors

The team believes that client alpha can be generated by investing in disruptive technology-driven growth, which can be found in all sectors. The last decade has seen technology move from a vertical to an economic horizontal and we would argue that it is now an economic necessity.

The next wave of disruption

Increased connectivity, as a result of Digital 4.0, will drive change in sectors that have not yet seen the most severe levels of disruption - these include healthcare, transportation, industrials and fintech. Identifying the winners represents a significant opportunity for client alpha. The ever-increasing speed at which companies can grow in winner-takes-all markets requires an experienced eye to spot the best opportunities.

A rapidly evolving sector

The accelerating pace of change implies dispersal of operational performance and therefore strong alpha capture for those best-placed. This gives active managers an advantage over passive vehicles that have no choice but to hold businesses that will not exist in the future. We believe an active management style is key to managing these changes – tomorrow’s winners will not be the same as yesterday’s.

ESG focus

ESG factors play a huge role in disruptor companies and the team believes that ESG considerations – long since embedded in its investment process – will continue to drive operational improvement, company ownership and equity returns.

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.

Contacts

Please visit our Contacts and Locations page.

GAM Star Disruptive Growth is a sub-fund of GAM Star Fund p.l.c., registered office at Dockline, Mayor Street, IFSC, Dublin, D01 K8N7, Ireland, an umbrella investment company.

Disclaimer: Past performance is not an indicator of future performance and current or future trends. The indications could be based on figures denominated in a currency that may be different from the currency of your residence country and therefore the return may increase or decrease as a result of currency fluctuations. 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. Any reference to a security is not a recommendation to buy or sell that security.