020 7189 9999 Mon - Fri: 7.45am to 6pm (Thurs 8pm)
Sat: 9.30am - 1.30pm
  •  
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. Manager Mark Hawtin typically avoids most of the larger industry names in favour of smaller, faster growing companies, though he has the flexibility to invest in more mature names if he finds their valuations attractive. Hawtin first identifies thematic trends in the sector, then uses a blend of fundamental analysis and valuation models to pick companies positioned to benefit on them.

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

Fund summary

Sector Technology and Telecoms
Structure OFFSHORE FUND
Launched February, 2011
Size £204m
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%
Ongoing charges figure 1.72%

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. As the fund differs remarkably from its benchmark, often not holding many of the top stocks, performance will diverge on occasion.

Portfolio

Allocation Proportion(%)
Equity 102
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash -2
Allocation Proportion(%)
UK 3
Europe 7
North America 67
Japan 0
Pacific 7
Other Equity 0
Allocation Proportion(%)
Large Caps 68
Mid Caps 20
Small Caps 12

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. Current themes include enablers, networks and platforms. 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) 1,945.72p
Accum units 1,945.72p
Fund commentary 13/01/16
Fund data updated on 05/12/16

Asset allocation

Allocation Proportion(%)
Equity 102
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash -2

Equity Geographic

Allocation Proportion(%)
UK 3
Europe 7
North America 67
Japan 0
Pacific 7
Other Equity 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 68
Mid Caps 20
Small Caps 12

Top 10 holdings

As at: 29/07/2016
8.3% Alphabet
6.9% Facebook
6.3% Tencent Holdings
6.0% Microsoft
5.1% Western Digital
4.6% Amazon.com
4.5% Intel
4.0% Micron Technology
4.0% Criteo Sa-Spon ADR
3.6% Visa
Source: GAM

Sector breakdown

Portfolio details

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

Constraints

Maximum weighting for any one stock is 10% with a maximum of 40% of the portfolio comprised of single positions of 5% or greater. Liquidity is controlled with a minimum of 90% of the portfolio sellable in under 10 trading days.
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
11/12 12/13 13/14 14/15 15/16   3 years 5 years Career 3 years 5 years Career
0.40% 1.21% -1.27% -0.75%   -0.17% 44.40%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Mark Hawtin

Manager. Hawtin is an Investment Director at GAM. Prior to joining GAM in 2008, he was a partner and portfolio manager at Marshall Wace Asset Management from 1999. Previously Hawtin has worked at Enskilda Securities, BNP Paribas and Quilter Goodison and has over 30 years of investment experience. He is based in London.

Track record

Mark Hawtin has 5.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.17%. During the worst period of relative performance (from February 2014 - March 2016) there was a decline of 34% relative to the index. The worst absolute loss has been 23%.

Periods of worst performance
Absolute -23% (May 2015 - February 2016)
Relative -34% (February 2014 - March 2016)

Other funds managed

  Start Date
GAM STAR TECHNOLOGY GBPFeb 2011

Sector record since March 2011 (6 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.

Invest in an existing account

This fund is not available to invest

Open a new account

This fund is not available to invest