The Encompass Fund (MUTF: ENCPX) is an aggressive growth-minded IRA fund established in June 2006. It will invest in large or micro-cap companies in the U.S. or abroad as long as the companies’ stock prices have high appreciation potential.
The fund is not for the risk adverse, as it engages in options trading, hedging transactions, and will enter foreign markets through the purchase of American Depositary Receipts (ADRs) and exchange traded funds (ETFs). Given the nature of its investments, the fund’s price volatility is expected to be greater than the price volatility of the U.S. stock market as a whole.
Here are the specifics for the Encompass Fund for today’s mutual fund spotlight:
Investing Strategy: The fund’s managers are looking for large returns. In addition to investing in mining and exploration companies, they will engage in options trading to gain exposure to certain securities and markets, in connection with hedging transactions.
Expense Ratio: With a 1.50% expense ratio and no transaction fee, the Encompass fund is low to moderately priced, compared with other funds in the category. It has a Morningstar rating of 5 stars.
Top 5 Holdings: The top stocks in the Encompass Fund include mineral exploration and development companies Avalon Rare Metals Inc. (NYSE: AVL) at 4.49%, Uranium Energy Corporation (NASDAQ: UEC) at 4.4%, Avion Resources Corporation (NYSE: AVR) at 3.25%, oil and gas exploration, development drilling and production company GeoPetro Resources Company (NYSE: GPR) at 2.28%, and gold and copper miner Freeport-McMoRan Copper & Gold B (NYSE: FCX) at 2.28%.
Returns: The one-year return of the fund is impressive at 56.2%, more than twice the return of the broader market’s 22%, 12-month return.
Other Fund Statistics
- Total Assets: $29.5 million
- Minimum Investment: $2,500 (IRA)
- Fund manager: Malcolm H. Gissen and Marshall G. Berol
- Manager’s Tenure: Since June 2006
