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GAM Star Continental European Equity

A focused approach to European equity investing

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GAM Star Continental European Equity is an actively managed strategy aiming for long-term capital growth through a concentrated portfolio of European-listed companies (ex-UK). The high-conviction, style-agnostic approach is grounded in detailed fundamental analysis and a disciplined selection process. At its core is the All-in Return framework, which breaks down expected returns into earnings growth, cash return and valuation change - helping the team assess each opportunity clearly and consistently. The portfolio typically holds 30–35 companies, focusing on the most compelling investment opportunities.
We use our all-in framework, a consistent and repeatable approach we apply across the European market. It contains three components, adding our expectations of earnings growth, cash return and valuation change for a company to get to our all-in return for a stock."
GAM Investments' European Equities Team

Our Edge

Honesty. Integrity. Clarity.

Focusing on clear, direct communication and true partnership with investors. An open source approach.

All-in Return Framework

A disciplined, transparent approach that breaks down expected returns into earnings growth, cash returns and valuation change, helping to identify attractive opportunities across styles.

Concentrated Portfolio

Investing in 30-35 carefully selected companies allows for meaningful conviction and clarity, avoiding dilution from holding too many positions.

Style-Agnostic Process

The team focuses on the best ideas regardless of style labels like growth or value, capturing diverse sources of returns.

Investment Team

The European Equity Team comprises Tom O’Hara (Investment Director), Jamie Ross (Investment Manager) and David Barker (Investment Manager), who operate from London. With over 40 years of combined experience, they bring broad continuity and added depth to the investment process. The team is seasoned and stable, with deep expertise in European equities and a strong collaborative track record. Diversity of thought is central to their approach - they encourage open discussion, challenge each other's assumptions and conduct thorough research to support their investment decisions.

We want to be open-source. That means sharing our investment insights, process and return assumptions with clients.
David Barker, Investment Manager
Tom O'Hara
Investment Director
Jamie Ross
Investment Manager
David Barker
Investment Manager

Philosophy and Process

Investment Philosophy

Our approach is based on three key beliefs: first, that assessing company competence requires direct engagement and cannot be fully automated - insights come from meeting management teams, supported by research and AI tools. Second, quality must be considered in context, recognising that valuation matters and that the traditional performance of high-quality or pure-growth companies is no longer guaranteed in today’s rapidly changing environment. Third, understanding change is vital; our all-in return framework emphasises analysing shifts in earnings growth, cash generation and valuation, focusing on companies where our earnings expectations differ positively from the market, supported by ongoing dialogue with management to anticipate and assess these changes.

Investment Process

Our investment process is designed to be clear and easy to understand. Central to our approach is the all-in return framework, which breaks down the expected annualised return of an investment into three key components: earnings growth, cash return and valuation change. This detailed analysis allows us to thoroughly evaluate a stock’s potential to outperform the broader market. We follow a style-agnostic philosophy, meaning we do not favour ‘value’ or ‘growth’ stocks but instead select investments from a wide universe based solely on the strength of their underlying investment case. The portfolio is deliberately concentrated, typically consisting of 30 to 35 carefully chosen positions. Our focus is on generating returns primarily through rigorous stock selection, with sector and thematic positioning playing a smaller but complementary role.

1

Idea generation

  • A creative, unconstrained process
  • Agnostic about idea sources
  • Company meetings, experts, research, analysis tools
2

All-in return Framework

  • Forecasting three-year earnings growth
  • Evaluating shareholder cash returns
  • Estimating valuation adjustment over time
3

Portfolio construction

  • Driven by all-in return framework analysis
  • Higher return potential supports larger position sizes (subject to risk controls)
  • Active oversight of sector, thematic and risk-factor exposures
  • Balanced approach combining bottom-up insights with top-down risk management
4

Use of AI and tools

  • Optimise & empower investment process
  • Powerful on-desk research support & sector analysis
  • Supports bottom-up modelling process

Reasons to Invest

A generational opportunity for Europe

Europe is redefining itself amid a changing geopolitical reality. Infrastructure and defence spending are a starting point for more fiscal support. The valuation discount to the US remains very large by historical standards.

A robust and repeatable investment process

The all-in framework creates consistent analysis across stocks and sectors. It forces debate over relative position sizing and overall portfolio shape.

Risk Management fit for new market dynamics

Using a combination of MAC-3 risk analysis and thematic basket mapping, the team aim to better capture risk in a market increasingly driven by short-term factors.

A nimble approach to AI integration

AI tools are used to analyse data and increase the efficiency of the investment process. Innovation partnerships with AI tool providers help maintain a leading position in AI development within investment management.

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 structures are in place, they aim to reduce but may not fully eliminate currency risk.

Equity
: Investments in equities (directly or indirectly via derivatives) may be subject to fluctuations in value, and their values may be more volatile than those of other asset classes. Equities and equity-related securities (such as warrants and rights issues) can be affected by daily stock market movements.

List Not Exhaustive
: This list of risk factors is not exhaustive. Please refer to the relevant Fund’s prospectus.

Our Thinking

Investment Opinions
Pricing fatigue: First the consumer, now signs of deterioration elsewhere?
11 August 2025 | Tom O'Hara

Europe’s consumer slowdown is deepening as pricing fatigue spreads across sectors once deemed resilient, says GAM Investments’ European Equities team.

Investment Opinions
Cleared for Takeoff – Takeaways from the 2025 Paris Airshow: Growing supply chain positivity
23 June 2025 | Tom O'Hara

Europe’s aerospace sector reaffirmed its global dominance at the 2025 Paris Airshow. Bolstered by strengthened supply chains, growing aftermarket demand and rising defence budgets amid geopolitical uncertainties, GAM's European Equity team believe the aerospace sector could be a high-flying opportunity for investors seeking attractive long-term growth.

Investment Opinions
A tale of two economic futures: Germany's fiscal pivot versus US deficit spiral
12 June 2025 | Tom O'Hara

Germany’s new government, a reluctant coalition between the Christian Democratic Union of Germany (CDU)/Christian Social Union in Bavaria (CSU) and the Social Democratic Party of Germany (SPD), represents the fourth time they have teamed up in coalition since the 1990s.

Our Thinking

Tom O'Hara: Asset TV Masterclass

Tom was a panellist in an Asset TV European Equities Masterclass discussing how active managers are picking stocks against a backdrop of human conflict, market volatility and Trump’s tariffs.

Tom highlights how Germany’s fiscal stimulus is changing the investment landscape for Europe, and some of the sectors and themes he and the team are currently looking at.

Fund Information

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