Eventide Gilead Fund Announces 2009 Results
Boston, MA, January 14, 2010 – The Eventide Gilead Fund (Nasdaq: ETGLX), a mutual fund practicing values-based and socially responsible investing, achieved a one-year performance return of 46.1% compared with the S&P 500 Index return of 26.5%, an out-performance of 19.6% for the period from January 1, 2009 through December 31, 2009. The fund outperformed the S&P 400 Midcap Index by 14.3% for the same period. During 2009, the Fund’s no-load class was named “Category King” five times by the Wall Street Journal for being among the top funds in the midcap core category by year to date or trailing one-year performance. At December 31, 2009, the Gilead fund reported a “since inception” annualized performance return of 9.4% compared with the S&P 500 Index return of -6.28% for the same period (inception date July 8, 2008).
“In its first full calendar year, we believe our fund performed exceptionally well in volatile and uncertain market conditions,” explained Robin John, co-founder of the Gilead Fund. “Our strategy of combining quantitative analytics with intensive research and qualitative assessments is designed to capitalize on opportunities in both bull and bear markets.
“We capitalized on opportunities to add to our portfolio equities we believe offer significant long-term appreciation, and to make these purchases at excellent values,” noted John. “While about two-thirds of our portfolio consists of long-term ‘commitment’ holds, our strategy and analytical capabilities enable us to dedicate a third of our portfolio to tactical equity buys and sells that exploit short-term market inefficiencies resulting from overbuying and overselling.”
The Eventide Gilead Fund uses an investment process developed by portfolio manager Finny Kuruvilla MD, PhD that uses multi-dimensional analytics with a goal of high returns relative to the market and low volatility. Hallmarks of the fund’s investment process include dynamic fundamental analysis, proprietary technical models, Capital Asset Pricing Model risk management, values-based screens and the ‘Masters Select’ strategy which utilizes a collective intelligence of today’s top performing fund managers and research analysts. This portfolio management process produced market outperformance through both the bear and bull markets of 2009.
Dr. Kuruvilla said: “We were particularly satisfied that the Eventide Gilead Fund out-performed our benchmark indices while investing in companies that operate with integrity and profit from ethical and sustainable activities. We believe there is a strong correlation between companies that operate in sustainable, responsible way and are able to generate long-term shareholder value. This includes managing businesses practices that benefit the environment and society, and sound management and corporate governance that supports the well-being and productivity of employees.”
Examples of the Fund’s holdings that illustrate this investment approach include Kinder-Morgan Management LLC and Momenta Pharmaceuticals, Inc. Kinder-Morgan operates more than 14,000 miles of natural gas pipelines serving North America. Dr. Kuruvilla noted natural gas is a clean, plentiful fuel with significant growth prospects, and he said the company is managed to generate shareholder value and has historically returned a 9% stock dividend to shareholders.
With the ability to analyze and replicate even complex prescription medications, Momenta is able to develop generic alternatives that can be made available at competitive prices. “We feel the company has a superb business model, a sound track record, and also promotes pricing competition that can make lower-cost medications available,” Dr. Kuruvilla explained.
Looking ahead to 2010, Dr. Kuruvilla said he believes the markets will be relatively stable, consistent with modest economic improvement, but that the current market is overbought. “I believe it will be possible to out-perform benchmark indices by making very selective purchases and capitalizing on market inefficiencies. We feel our statistically based investing model is designed to perform well in a variety of market conditions.” He noted the healthcare sector continues to offer significant buying opportunities because of legitimate but exaggerated investor concerns about regulation and industry changes.
The Eventide Gilead Fund is managed by Eventide Asset Management, a Boston-based investment advisory firm that is committed to investing in values-based companies and was launched July 1, 2008. According to Managing Partner of Eventide Asset Management, Robin John, “It could truly impact business culture if more and more conscientious investors directed their capital into products and businesses that supported their values.”
The S&P 500 is an index created by Standard & Poor’s and is considered to represent the performance of the stock market generally. It is not an investment product available for purchase .Kinder-Morgan comprised 1.73% of the Fund’s net assets and Momenta Pharmaceuticals comprised 2.56% of net assets portfolio as of December 31, 2009.Portfolio holdings subject to change.
Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the fund’s prospectus please call the fund, toll free at 1.877.453.7877. You can also obtain a prospectus at www.eventidefunds.com
An investor should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information about the Eventide Gilead Fund can be found in the Fund’s prospectus. Please read the prospectus carefully before investing. The Fund is distributed by Matrix Capital Group, Inc., New York, NY 10017.
The Eventide Gilead Fund
Media: Cindy Martin
Capital Insight Partners