Drilling deep with Gartmore Global Focus

With $100-a-barrel oil a distinct possibility, amid heightened demand and threats to supplies, the market for ultra-deepwater rigs is proving to be extremely strong. A beneficiary of this trend is Houston-based Transocean, the world’s largest offshore drilling contractor. Transocean is reporting a milestone $600,000 day rate for its drill ship Deepwater Pathfinder, while fielding multiple enquiries for two of its high-specification ultra-deepwater floaters that will be coming available in 2010. “This suggests there is extremely limited availability for high-spec rigs over the next two years,” according to Neil Rogan, Head of Global Equities and manager of the Gartmore Focus Fund and the Gartmore SICAV Global Focus Fund. Both Funds established holdings in Transocean at the start of the month.

“Transocean’s merger with GlobalSantaFe, a leading offshore drilling contractor, also based in Houston, is expected to enhance efficiencies further,” commented Neil. (The $53 billion merger, which has secured approval from the two companies’ shareholders, is expected to close by year-end.) Additionally, Transocean is already one of the most global offshore drillers.

Gartmore’s Global Focus Funds comprise concentrated portfolios of best ideas, typically 30 to 40 stocks. In identifying best ideas, an assessment is made of changing global industry dynamics, as well as an individual stock’s franchise, such as changes in competitive positioning, management and execution. As part of the Gartmore On Call programme of events, Neil will be presenting on the Funds on Tuesday 27 November at 4pm (GMT). The registration link for the event is www.asset.tv/prereg/?gartmore. The interview with Neil aims to provide an overview of recent fund activity.

Neil has managed the Gartmore Global Focus Fund since its 2001 launch. An Associate Member of the UK Society of Investment Professionals, Neil is rated AAA by Citywire. Launched in 2004, the Gartmore SICAV Global Focus Fund recently gained a five-star rating from Morningstar to complement its AAA rating from Standard & Poor’s.