BOSTON (TheStreet) -- Dr. Finny Kuruvilla, manager of the Eventide Gilead Fund (ETGLX), says he's finding strong prospects among health care stocks, such as Momenta Pharmaceuticals (MNTA) and Genoptix (GXDX).
The $4.3 million mid-cap growth fund has risen 36% during the past year, outperforming the 29% advance of the S&P 500 Index. The 18-month-old fund beat more than half of competing funds during that time, according to Morningstar (MORN).
Welcome to TheStreet's Fund Manager Five Spot, where America's top mutual fund managers give their best stock picks in five fast and furious questions.Are you a bull or a bear? Kuruvilla: If someone forced me to guess, I would say that the market is likely to be choppy in the near term as we digest lots of conflicting data. Longer term, I'm most worried about our political policies being too near-term oriented because major elections are never more than two years away. No one seems to have the grist to advocate for the real reform that we need, such as handling our ballooning debt. In life, it's rare that managing for near-term satisfaction is ever the best thing. What is your top stock pick? Kuruvilla: There are at least three or four that jump to mind right away. There's Domtar (UFS), which makes paper products in environmentally friendly manner. They collaborate with groups like the World Wildlife Fund to make sure that they operate with best practices. The company has a very attractive valuation and trades with a free cash flow yield of over 20%. A second is Momenta Pharmaceuticals, which came out of work from the Massachusetts Institute of Technology. They have perhaps the best technology out there for making generics of complex drugs. The Food and Drug Administration may soon be approving their first drug, low molecular-weight heparin, which would be a nice catalyst for the stock. And we badly need more competition in health care to keep drug costs down.
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