GaveKal Capital today marked the 3-year anniversary of the GaveKal Knowledge Leaders Fund (NASDAQ: GAVIX, GAVAX), which seeks to deliver superior risk-adjusted returns by investing in the world’s most innovative companies. The firm also announced it has surpassed $600 million in assets under management in the GaveKal Knowledge Leaders Strategy as of October 29, 2013.
“The fund has delivered equity-like returns with bond-like beta,” said Shawn Paulk, head of distribution, GaveKal Capital. “Now at the 3-year milestone, we’re delighted to report positive returns since inception with half the volatility of the index.”
The GaveKal Knowledge Leaders Fund stands out relative to its benchmark MSCI World Index and peers for its extremely low risk metrics since inception, including:
- Standard deviation of 6.48%, less than half that of the index
- Beta of 0.34, compared to 1.00 for the index
- Alpha of 5.72% compared to 0% for the index
- Active share of 91.92%, compared to 0% for the index
Active Share determines the extent of active management being employed by mutual fund managers by measuring the percentage of holdings in a portfolio that differ from the index. Researchers in a 2006 Yale School of Management study determined that funds with higher active share will tend to be more consistent in generating high returns against the benchmark indexes.
Since inception, the fund returned 10.18%. For more information on results, the firm’s most recent quarter update and video recap now are available online for US investors at
and non-US investors at
In addition, the firm announced the GaveKal Knowledge Leaders Fund is now available through
, the nation’s largest independent broker-dealer. For more details, please email your LPL advisor or email
About the GaveKal Knowledge Leaders Strategy
The strategy is based on the idea that innovation is an undervalued asset. The investment team targets knowledge leaders: the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. The team seeks to identify the best among global companies that are tapping deep reservoirs of intangible capital to generate earnings growth. By measuring corporate knowledge investments and applying a proprietary process to analyze knowledge spending, the investment team seeks to identify attractive long-term opportunities. The team has combined more than 20 years of institutional knowledge, advanced technology platforms and thousands of development hours to design the intellectual property behind its process.