You won't find tobacco, alcohol or gambling companies in the
Eventide Gilead Fund (
). That's because faith--specifically, Christian principles as they
apply to business--guides the fund's stock selection. "We invest in
companies that excel in creating positive social value," says lead
manager Finny Kuruvilla. The approach gets results: Since
Eventide's mid-2008 launch, it has earned 17.5% annualized, beating
the typical midsize-company growth fund by an average of 8
percentage points per year.
At Eventide, earnings and other financial measures matter less
than whether a company operates with integrity. That said, this
fund isn't dowdy. Kuruvilla and co-manager David Barksdale have
owned shares in Tesla Motors, the electric-car maker, since 2011
(the stock, though weak lately, has climbed 276% over the past
year). Kuruvilla, a doctor by training, likes biotech firms because
their success isn't strongly intertwined with the overall economy.
The fund's top holding at last report was Acadia Therapeutics,
which has skyrocketed 348% over the past year.
Though Morningstar considers Eventide a midsize-company fund, it
can invest in businesses of any size. At last report, half of its
assets were invested in small-company stocks, 32% in midsize firms
and 18% in large concerns. The fund's no-load Class N shares are
available at Fidelity and
, among other brokers, with no transaction fee.