Direct Connection is the fundamental change in computing from the 20th to 21st century. It is the way in which computers have escaped from digital isolation and are now free to directly impact an analogue world. And it is changing the world that we live in.
30 March 2018
Return since Launch (31/10/2023)
Annualised Return since Launch
BlueBox Investment Strategy
We are a technology fund, but we’re not obsessed with technology; we’re obsessed with technology companies. Technology companies that are profitable and create value for their shareholders.
We aren’t chasing the companies that produce the latest exciting device, or disrupt the current market, as these disruptors swing between success and obscurity, and their value follows accordingly. More fail than succeed and we’re not interested in betting on the result.
The companies that we like are those behind every disruptor’s success: the cutting-edge suppliers of semiconductors, hardware, software and services; well run, dependable companies that enable the disruption and take a share of every successful disruptor’s profits; companies whose value keeps climbing, as our fund’s performance will attest.
"We are investing not in technology, but in technology businesses, and these businesses must create value for their outside investors."
- William de Gale
We normally hold between 30 and 40 positions with a maximum weight of 10%, targeting mainly companies between $10 billion and $300 billion market cap. The fund is not benchmark oriented, keeps a low turnover in its positions and cash at minimum, usually below 10%. On 1 May 2021 the Fund transitioned to UCITS, improving and simplifying the subscription process. It is purely a matter of regulation and there have been no consequential changes to existing subscriptions or to the way in which the Fund is invested or managed.
Over the past 15 years, there has been a fundamental shift in the way that computing has interacted with the world. Computers have come out to meet the real world and to change it directly. This is the Direct Connection, and it will provide a secular tailwind for the Technology sector for decades. The fund invests in companies that will contribute and benefit from such connection.
We are investing not in technology, but in technology businesses, and these businesses must create value for their outside investors. We look for 4 characteristics in our investments: A strong underlying technology trend, principally Direct Connection; A company’s ability to create value as a result of that trend; Strong barriers to entry; A reasonable division of generated value between outside shareholders and other stakeholders.