GAM STAR TECHNOLOGY I GBP

Multicap fund with a bias to smaller, faster growing technology companies.

  • 3759.28p Price (Inc)
  • 3759.41p Price (Acc)
  • 5.00% 0.00%

    Initial charge
  • 1.00% Annual management charge
  • 1.21% Ongoing charges
  • 0.00% Yield

Prices as at 13 January 2016 , fund data last updated 19 November 2019

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.

Fund summary

Sector Technology and Telecoms
Structure OFFSHORE FUND
Launched July, 2011
Size £188m
Yield 0.00%
Charging basis Income
Dividends paid 31 Aug

Charges

Initial charge 5.00%
Initial charge via Bestinvest 5.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.21%

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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.

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.

Manager research

Average monthly relative returns

Bestinvest MRI

14/15 15/16 16/17 17/18 18/19 3 years 5 years Career 3 years 5 years Career
-1.09% 0.00% 0.22% -0.04% -0.76% -0.19% 0.00% -0.17% 41.30% 0.00% 41.30%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Mark Hawtin

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 8.5 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 - July 2019) there was a decline of 36% relative to the index. The worst absolute loss has been 23%.

Periods of worst performance

Absolute -23.00% (May 2015 - February 2016)
Relative -36.00% (February 2014 - July 2019)

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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Top 10 holdings

Data accurate as at 29 July 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

Portfolio

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.

Key Investor Documents

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