Polar Capital Global Technology
This is a high conviction, benchmark-agnostic strategy managed by one of Europe’s largest and most experienced specialist technology teams. As Polar Capital’s flagship technology fund, it invests across the global technology universe, from established industry leaders to emerging innovators, with the flexibility to invest across software, semiconductors, cloud computing, cybersecurity, networking and internet platforms. The team seeks to identify companies benefiting from long-term structural technology trends while avoiding businesses whose competitive positions are being eroded by disruption.
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Our Opinion
The fund has delivered outstanding returns over the long term by combining thematic insight with dis-ciplined bottom-up stock selection. The team's willingness to evolve the portfolio as new technologies emerge has been a major contributor to their success. We particularly like the depth and experience of the research team and the managers' focus on identifying disruptive businesses before they become widely recognised. A dedicated team of 12 technology specialists is another significant strength, allow-ing members of the team to develop deep expertise within their areas of coverage.
Fund Managers
Nick Evans, Co-Manager
Nick initially worked in the asset management industry for Samuel Asset Management before he be-came Head of Technology at AXA Framlington. Nick was lead manager of the AXA Framlington Glob-al Technology fund between 2001 and 2007. He joined Polar Capital in September 2007 and became lead manager on the Global Technology fund in January 2008. He has over 28 years experience in the industry. He graduated from University of Hull with an honours degree in Economics.
Ben Rogoff, Co-Manager
Ben began his career at CMI as a global technology analyst. He moved to Aberdeen in 1998 before joining Polar Capital in 2003. Ben became co-manager on this fund in 2006 and is the lead manager on the Polar Capital Technology Trust. Ben has over 30 years experience in the industry as a technology specialist. He graduated from St Catherine’s College, Oxford in 1995.
Xuesong Zhao, Co-Manager
Xuesong started his career in financial engineering at Algorithmics in 2005. Prior to joining Polar he also worked at Aviva and Pictet Asset Management. He has worked on the fund since he joined Polar Capital in 2012. Xuesong holds an MSC in Finance from Imperial College London and a BA in Eco-nomics from Peking university. He is a CFA charterholder.
Fatima Iu, Co-Manager
Prior to joining Polar, Fatima spent 18 months working at Citigroup Asset Management with a focus on consumer products and pharmaceuticals. She is responsible for the coverage of European Technology, Global Security, Networking, Clean Energy and Medical Technology. She holds an MSc in Chemistry with Medicinal Chemistry from Imperial College of Science & Technology London. Fatima is a CFA charterholder. She has worked on the fund since she joined Polar Capital in 2006.
Risk
Technology companies can experience larger share price swings than the wider stock market, particular-ly when investor sentiment changes or economic conditions become more uncertain. As a result, this fund is likely to be more volatile than a diversified global equity fund.
The managers seek to reduce risk through diversification across different technology themes, industries and companies, while maintaining a disciplined investment process. Every holding is monitored contin-uously and positions may be reduced or sold if the original investment case changes or a company is overtaken by technological disruption. The managers also place significant emphasis on valuation, aim-ing to avoid overpaying for future growth, and typically invest in companies with strong balance sheets and sustainable business models. While these measures cannot eliminate risk, they are designed to im-prove the portfolio’s resilience over the long term.
Company Description
Founded in 2001, Polar Capital supports more than 12 investment teams that focus on a range of products. Its founding strategy of fostering an equity culture amongst its employees and providing high levels of transparency to clients means 30% of the firm’s equity is currently held by directors, founders and employees. Polar Capital is principally located in London and maintains offices in Tokyo, Connecticut, Jersey, Edinburgh, Shanghai and Paris. It was awarded the Elite Equities Provider Rating in 2019 and 2021.
Investment process
The team’s philosophy is built around the belief that technology innovation creates long periods of structural growth for companies driving change, while simultaneously disrupting established market leaders.
The team combines deep fundamental research with extensive industry knowledge to identify businesses capable of sustaining above-average earnings growth. The process begins by identifying the major technological themes reshaping the global economy. The managers continually assess structural trends and changes in technology adoption, looking for companies approaching important growth inflection points across areas such as artificial intelligence, cloud computing, cybersecurity, semiconductors and other emerging technologies. They also spend considerable time assessing how new technologies could disrupt existing market leaders, believing that avoiding “future losers” can be just as important as identi-fying future winners.The team pride themselves on spotting these losers early.
The managers favour businesses benefiting from structural growth trends that are generating cash, have strong balance sheets and high barriers to entry. Valuation also plays an important role, with every in-vestment assessed to ensure its share price offers an attractive balance between future growth potential and current expectations.
The portfolio is built from the bottom up and typically holds between 60 and 85 companies from across the global technology sector. The managers have the flexibility to invest across companies of different sizes, although the portfolio generally has a bias towards larger, established businesses while selectively investing in smaller companies with significant long-term growth potential. Position sizes reflect the managers’ conviction, while diversification helps reduce reliance on any single company or technology theme.
Throughout the process, the managers continually review existing holdings, acknowledging that tech-nology evolves rapidly, meaning today’s market leaders can quickly lose their competitive advantage. The managers are prepared to reduce or sell the position and reinvest in more attractive opportunities, with the lead manager retaining ultimate responsibility for portfolio construction.
Risk
Technology companies can experience larger share price swings than the wider stock market, particular-ly when investor sentiment changes or economic conditions become more uncertain. As a result, this fund is likely to be more volatile than a diversified global equity fund.
The managers seek to reduce risk through diversification across different technology themes, industries and companies, while maintaining a disciplined investment process. Every holding is monitored contin-uously and positions may be reduced or sold if the original investment case changes or a company is overtaken by technological disruption. The managers also place significant emphasis on valuation, aim-ing to avoid overpaying for future growth, and typically invest in companies with strong balance sheets and sustainable business models. While these measures cannot eliminate risk, they are designed to im-prove the portfolio’s resilience over the long term.
ESG
ESG analysis forms part of the research process and stewardship activities, although financial returns remain the primary driver of investment decisions.
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