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Bestinvest rating
GAM STAR TECHNOLOGY GBP

GAM STAR TECHNOLOGY GBP - Overview

Overview of GAM STAR TECHNOLOGY GBP

This fund seeks to achieve long-term capital appreciation by investing globally in a diversified portfolio of technology-related companies. The fund invests primarily in the US reflecting the location of much of the industry, though manager Mark Hawtin typically avoids most of the larger industry names in favour of smaller, faster growing companies. Hawtin first identifies thematic trends in IT, then employs fundamental analysis to pick companies poised to capitalise on them. Due to their nature, specialist funds can be subject to specific sector risks. Investors should ensure they read all relevant information in order to understand the nature of such investments and the specific risks involved.

  • Standard Initial Charge 5.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector Technology and Telecoms
Structure OFFSHORE FUND
Launched February, 2011
Size £536m
Yield 0.0%
Charging basis Income
Dividends paid 31 Aug

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Total expense ratio 1.73%

There is a performance fee of 10% over the MSCI World IT index with a high water mark

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

Mark Hawtin has built up an impressive record on this fund since its launch in 2011. He has a proven record in the sector, running a technology long/short fund at GAM and having previously run a technology hedge fund at Marshall Wace. Hawtin and his team carry out proprietary research which should give them a knowledge edge and he demonstrates strong awareness of his stocks and the IT industry generally. He invests across the market cap spectrum, favouring faster growing companies, but also has the flexibility to invest in more mature names if he finds their valuations attractive.

Portfolio

Allocation Proportion(%)
Equity 88
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 12
Allocation Proportion(%)
UK 0
Europe 8
North America 73
Japan 3
Pacific 16
Other Equity 0
Allocation Proportion(%)
Large Caps 68
Mid Caps 17
Small Caps 15

View all performance data for this fund

Investment process

The manager starts by identifying industry themes with multi year growth potential, then looks for stocks that will benefit from these themes. Sector research includes speaking to industry names, such as chief technology officers, to see how technology is being used and how this is changing. The team carry out fundamental analysis using a “traffic light” system based on five factors - competitive advantage, management, pricing power, growth and valuation. The team create their own valuation models using various factors including discounted cash flow - there can be up to six models per company based on different scenarios for its future. The manager looks for at least 50% upside in a stock, but valuation is not the key factor in stock selection. Good management is important - Hawtin won’t invest in companies he considers to be poorly managed, even if he likes their products. In constructing the portfolio he pays little attention to the benchmark, often holding few of the top 10 names which dominate the index. The manager also makes extensive use of technical analysis in timing trades.

Live feed

Bid price(inc) 1,585.71p
Accum units 1,585.71p
Fund commentary 28/03/14
Fund data updated on 18/12/14

Asset allocation

Allocation Proportion(%)
Equity 88
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 12

Equity Geographic

Allocation Proportion(%)
UK 0
Europe 8
North America 73
Japan 3
Pacific 16
Other Equity 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 68
Mid Caps 17
Small Caps 15

Top 10 holdings

As at: 28/02/2014
8.0% Google A
7.2% Facebook
5.4% Xilinx
5.2% Western Digital
4.9% Seagate Technology
4.0% Linkedin
4.0% Vmware
3.9% Apple
3.1% SanDisk
3.1% Mastercard
Source: GAM

Sector breakdown

Portfolio details

40-60 stocks. May gear up to 10% using CFDs, or use cash as a defensive measure.

Constraints

Max 20% in one theme. Max 10% in one stock. Max size of a single stock position is 10 times a third of the average daily volume. Max theoretical loss from a single stock is 0.5% in a single day.
There are some limits placed on the portfolio but these could result in significant divergences from the benchmark from time to time.

Average monthly relative returns Bestinvest MRI
09/10 10/11 11/12 12/13 13/14   3 years 5 years Career 3 years 5 years Career
0.26% 1.02% -1.40%   -0.04% 0.06% 57.90% 68.80%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Mark Hawtin

Manager. Hawtin is an Investment Director responsible for running global and European long and long/short equity funds. Prior to joining GAM in 2008, he was a partner and portfolio manager with Marshall Wace Asset Management for eight years, managing one of Europe’s largest technology, media and telecoms hedge funds. He previously spent seven years at Enskilda Securities, initially as head of sales, before taking responsibility for the international equity business, overseeing pan-European research and trading activities and around a quarter of the investment banking staff. He is based in London.

Track record

Mark Hawtin has 3.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.06%. During the worst period of relative performance (from February 2014 - November 2014) there was a decline of 19% relative to the index. The worst absolute loss has been 13%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 69%.

Periods of worst performance
Absolute -13% (February 2014 - April 2014)
Relative -19% (February 2014 - November 2014)

Other funds managed

  Start Date
GAM STAR TECHNOLOGY GBPFeb 2011

Sector record since March 2011 (4 yrs)




About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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