Steven Williams, Head of UK Distribution, talks to Paul Markham, Investment Director, Global Equities, about the themes driving global equity markets, the benefit of experience and the importance of maintaining longer-term conviction ahead of ‘tinkering’.
17 April 2025
Steven Williams: Paul, you've been managing global equities for more than a quarter of a century. What are you looking to achieve with this global equity strategy?
Paul Markham: Well, the strategy is an institutional-grade approach to global equities with a focused portfolio. We're looking to use a framework of themes, which we identify as being the major changes in the world, politically, socially and economically, which we think can inform markets over the long term, with a risk-controlled approach, with a 2% outperformance target and with the ability to outperform significantly over the longer term.
SW: So with that in mind, Paul, the global equity universe is quite crowded. What makes your strategy different to the peers?
PM: Well, we have a couple of, I think, very distinct advantages. One of them is that we have, as we've already mentioned, a thematic backdrop. And we have four major themes right now which relate to various compelling changes which we see occurring. And we think we can take advantage of those tailwinds and invest in them. And also, they identify the headwinds that we wish to avoid when it comes to investing in global markets.
I also think the experience that myself and my team members bring to the table is really compelling as well. We have a combined experience of over 80 years in markets, including wide experience before the global financial crisis of 2008, which I think does differentiate us from the market. And also, we're co-located here in London. We have a really tight and very interactive investment process on the team, which we think allows us to be agile, nimble, with short lines of communication. And we think that allows us to be pretty quick from the ability to identify an opportunity, to be able to analyse it and then to be able to enact it in the portfolio.
SW: And with those tailwinds that you mentioned and some of those themes, how do you balance that with the bottom-up stock selection?
PM: I think it's really important to remember that the number of pure stock pickers, self-identifying pure stock pickers in the market, is very high. And it's always been my belief that stocks don't operate in a vacuum and that there are clearly very strong macro crosswinds at any stage which can impact stocks. And that's particularly the case right now.
So we very much take those into account and we do very much keep very close eyes on what's happening in the world of macro. However, what we try not to do is to allow every single piece of news to influence what we're doing and to look to our themes for that longer-term guidance.
SW: And within that, and the high conviction that you have, how concentrated is the portfolio?
PM: We look for 40 to 60 names as our range, of which at the moment we're at the lower end, so we're at 41 names. And that will vary according to the kind of positioning which the portfolio is holding. So for example, at a time when there is more emerging markets on the portfolio, we will probably have more names, where there's less liquidity, where volatility in some names is higher. But we do believe that at that level against the MSCI All Country World Index, that that's a very tight and focused portfolio whilst being a sufficient number of stocks to be able to be diversified.
SW: And you've been managing global equities now for 26 years. Is there one standout lesson that you've had to learn over that time?
PM: I think the main lesson is that, as we just alluded to, it's impossible to capture every nuance, every move in markets. And sometimes some of the moves can be quite distracting and sometimes the market goes against you. But the themes give us that sort of longer-term North Star that we can look at as a way of keeping very much the rationale of our positioning.
What I would say is that when the moments come, when the time is ripe for shifting positioning of the portfolio, you have to do a lot more than you think you do. And I think that that is certainly a lesson that I've learned and tinkering doesn't do the job. So we don't do that. We prefer to stick with our longer-term positioning, admit when we're wrong or to be reassured by things when we're right and allow that longer-term view to govern where we position over time.
SW: Paul, that was tremendous. Thank you so much.
Paul Markham manages Global Equity and Disruptive Growth strategies at GAM Investments.
Important disclosures and information
The information contained herein is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained herein may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information contained herein. Past performance is no indicator of current or future trends. The mentioned financial instruments are provided for illustrative purposes only and shall not be considered as a direct offering, investment recommendation or investment advice or an invitation to invest in any GAM product or strategy. Reference to a security is not a recommendation to buy or sell that security. The securities listed were selected from the universe of securities covered by the portfolio managers to assist the reader in better understanding the themes presented. The securities included are not necessarily held by any portfolio nor represent any recommendations by the portfolio managers nor a guarantee that objectives will be realized.
The MSCI All Country World Index captures large and mid cap representation across 23 developed markets and 24 emerging markets countries. With 2558 constituents (as at 31 March 2025), the market capitalisation-weighted index covers approximately 85% of the global investable opportunity set.
This material contains forward-looking statements relating to the objectives, opportunities, and the future performance of the U.S. market generally. Forward-looking statements may be identified by the use of such words as; “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “potential” and other similar terms. Examples of forward-looking statements include, but are not limited to, estimates with respect to financial condition, results of operations, and success or lack of success of any particular investment strategy. All are subject to various factors, including, but not limited to general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting a portfolio’s operations that could cause actual results to differ materially from projected results. Such statements are forward-looking in nature and involve a number of known and unknown risks, uncertainties and other factors, and accordingly, actual results may differ materially from those reflected or contemplated in such forward-looking statements. Prospective investors are cautioned not to place undue reliance on any forward-looking statements or examples. None of GAM or any of its affiliates or principals nor any other individual or entity assumes any obligation to update any forward-looking statements as a result of new information, subsequent events or any other circumstances. All statements made herein speak only as of the date that they were made.
The information contained herein is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained herein may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information contained herein. Past performance is no indicator of current or future trends. The mentioned financial instruments are provided for illustrative purposes only and shall not be considered as a direct offering, investment recommendation or investment advice or an invitation to invest in any GAM product or strategy. Reference to a security is not a recommendation to buy or sell that security. The securities listed were selected from the universe of securities covered by the portfolio managers to assist the reader in better understanding the themes presented. The securities included are not necessarily held by any portfolio nor represent any recommendations by the portfolio managers nor a guarantee that objectives will be realized.
The MSCI All Country World Index captures large and mid cap representation across 23 developed markets and 24 emerging markets countries. With 2558 constituents (as at 31 March 2025), the market capitalisation-weighted index covers approximately 85% of the global investable opportunity set.
This material contains forward-looking statements relating to the objectives, opportunities, and the future performance of the U.S. market generally. Forward-looking statements may be identified by the use of such words as; “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “potential” and other similar terms. Examples of forward-looking statements include, but are not limited to, estimates with respect to financial condition, results of operations, and success or lack of success of any particular investment strategy. All are subject to various factors, including, but not limited to general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting a portfolio’s operations that could cause actual results to differ materially from projected results. Such statements are forward-looking in nature and involve a number of known and unknown risks, uncertainties and other factors, and accordingly, actual results may differ materially from those reflected or contemplated in such forward-looking statements. Prospective investors are cautioned not to place undue reliance on any forward-looking statements or examples. None of GAM or any of its affiliates or principals nor any other individual or entity assumes any obligation to update any forward-looking statements as a result of new information, subsequent events or any other circumstances. All statements made herein speak only as of the date that they were made.