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GAM STAR DISRUPTIVE GROWTH

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GAM Star Disruptive Growth is a long only equity fund with a global growth strategy centred around the theme of disruption.  Experienced investor Paul Markham not only invests in technology-enabled disruptive companies but also includes companies across multiple sectors which through products, systems or categories can disrupt the existing business landscape.

Our Edge

Focus on Fundamental analysis

Paul and the team manage a fundamentally-driven portfolio with thematic backing.

Unconstrained, active approach

The team uses a quality growth approach; the focused portfolio has a high active share. There is individual idea ownership but this is also open to frequent discussion, debate and scrutiny.

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 Paul Markham, Investment Director. Paul has extensive experience and a strong track record as a global equity portfolio manager, with a career spanning 25 years.

He is supported by Wendy Chen, Senior Investment Analyst. 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.

High growth-adjusted multiples can persist for the most compelling situations, but ultimately valuation matters.
Paul Markham, Investment Director
Paul Markham
Investment Director
Wendy Chen
Senior Investment Analyst

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 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 conducting in-depth fundamental analysis 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

Establish thematic backdrop

  • Long-term secular drivers and headwinds direct our research
  • We seek disruptive elements across industries be it technological, consumption-related, political, social or economic
2

Fundamentals & stewardship

  • Robust financial analysis
  • Valuation at the core of our process
  • ESG integral to decision-making
3

Company quality

  • Determine competitive and market background
  • Assess growth dynamics
  • High quality management a focus
4

Portfolio construction and risk

  • Focused portfolios
  • Investors not traders
  • Three-tiered risk management

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.

Our Thinking

Active Thinking
Active Thinking: Keeping our AIs on the prize
08 July 2024

Amid ongoing investor fervour for artificial intelligence (AI) stocks, Wendy Chen discusses her key takeaways from the COMPUTEX Taipei IT trade show, and shares her take on how the latest tech developments square with elevated valuations across the sector.

Investment Opinions
The Disruptive Strategist: The Temu effect - How an Asian ecommerce entrant shook up the US internet landscape
7 November 2023

Asian low price ecommerce marketplace Temu is expanding globally, becoming the most downloaded app in the US. GAM Investments’ Wendy Chen explains how it is achieving success.

Investment Opinions
The Disruptive Strategist: The disruptive forces reshaping China's electric vehicle landscape
10 August 2023

China is leading the way in both electric vehicle (EV) manufacturing and consumption, with China’s domestic market accounting for 62% of global EV sales in 2022. GAM Investments’ Wendy Chen highlights how China is reshaping the EV landscape in terms of user experience, extended battery life and affordability.

Our Thinking

Fund Information

Contact Us

If you would like us to contact you, or email you with further information, please complete the enquiry form below.

Speak to one of our client directors

If you wish to talk to a member of the team, please click the button below for their contact details.

 

 

Speak to a member of the team

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.

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