Citywire AAA-rated Mark Hawtin’s European long/short fund is to be turned into a global long/short tech fund, Wealth Manager can reveal.
Subject to investor approval, the investment policy of the £33 million GAM Star Absolute Europe will change to focus on technology companies with no market capitalisation or geographic constraints. It will duly be renamed GAM Star Alpha Technology.
Hawtin (pictured) already runs the £350 million long-only GAM Star Technology fund, which has returned 53.5% since its launch in 2011 compared with 30.9% from its benchmark MSCI World Information Technology index. Within that fund Hawtin’s top holdings are Apple and Google, which together account for 16.5% of the portfolio.
The new strategy will differentiate itself by retaining the long/short approach, with short positions expressed through derivatives. GAM Star Absolute Europe already has a tech skew, with the largest holding being Danish telecoms group TDC. Contracts for difference in ARM and Vodafone also appear in its top 10.
As well as internet businesses and technology manufacturers, the fund will invest in companies ‘which utilise business models that are driven by new technologies’. GAM is also seeking permission for the fund to hold convertible securities and exchange-traded funds. The base currency of the fund will switch from euros to US dollars too.
Investors’ agreement to the amendments will be sought at a meeting on 4 February; those who wish to will have the opportunity to redeem their units before the charges are implemented.