The 20 Rising Stars of Mutual Funds 2008 - (Page 17) overseeing $16 billion of the firm’s $106 billion in assets under management. In addition, he co-created the global generalist research function, which he said differentiates the firm from its peers. “Being part of that is my greatest accomplishment,” he added. In July 2007, Gilchrist and Thomas Marsico took over and re-shaped the Gartmore U.S. Opportunities Fund, changing its stock holdings to target those stable value stocks that could be subject to lifecycle changes as part of the firm’s core growth investment strategy, which aims towards diversity. According to Gartmore, the fund has outperformed its benchmark In 10 years, Gilchrist intends to be where he is now, running the same portfolios. He pointed to Thomas Marsico’s cultural integrity as the reason why he considers him his best boss. “He has been a fantastic influence, but I wouldn’t call him a boss,” he said. “I consider him to be a partner.” Gilchrist said the companies he most admires have high integrity, pay the most attention to risk-adjusted returns for shareholders and make consumers’ lives better and more efficient. “That’s the type of company that we try to invest with,” he added. “THE CHALLENGE WAS BASICALLY GETTING QUANTITATIVE AND FUNDAMENTAL THEMES TO WORK IN UNISON TO DELIVER PERFORMANCE.” —MANIND GOVIL among the funds. “The challenge was basically getting quantitative and fundamental themes to work in unison to deliver performance,” he said, noting that a member of the firm’s quantitative research team, which would look at investments from a numbers point of view, would spend two to three months with a member of the fundamental research team, which relied on research based on input from companies, competitors, customers and suppliers. From 2001 to August 2005, Govil was lead portfolio manager for large-cap blend/core equities, as well as co-head of equities and head of equity research at Mercantile Capital Advisors. Prior to 2001, he was lead portfolio manager for core equity at Mercantile. A chartered financial analyst, he calls Mercantile’s Topping his best boss. “He played an integral role in shaping my formative years in the investment business,” he said. Among companies, Govil most admires Berkshire Hathaway and how Buffett has run it. He said its management has high ethical standards exemplified by how direct its annual reports are in explaining strengths and weaknesses. “They try to treat you not just like a stockholder, but like a partner,” he added. In 10 years, Govil plans to be where he is now. “I hope to be managing the RS Core Equity Fund,” he said. “I hope to be meeting people who say they’re glad to be investing.” Going forward, he believes there will be less of an emphasis on style boxes in the fund industry and more on being able to generate performance outside of them. 10. MANIND GOVIL Portfolio Manager RS Investments, New York Age: 35 Education: University of Bombay (BCom); University of Cincinnati (M.B.A.) Mentors: Warren Buffett, Chairman and CEO, Berkshire Hathaway; Peter Lynch, Former Vice Chairman, Fidelity Management & Research; Brian Topping, Retired Vice Chairman, Mercantile Bankshares; Rudolph RiadYounes, Head of International Equities, Julius Baer Investment Management Govil joined RS Investments in October 2006 in connection with Guardian Investor Services’ acquisition of an interest in the firm. Prior to that, he served as the head of equity investments at Guardian Life, where he managed its Core Equity Fund since August 2005. “The accomplishment I am most proud of is the fact that every one of our team members has added alpha since we came together,” he said. Since Govil took over the Core Equity Fund, it went from being a losing fund to one that beats the S&P500. He credits the improvements to being able to recognize which investments are steady and solid and also to an internal strategy of crosspollination to improve performance 9. CORY GILCHRIST index and sector average for the three months ending October 31. Prior to joining Marsico Capital in May 2000, Gilchrist spent four years as an international portfolio manager and analyst at Invista Capital Management, a member of The Principal Financial Group, where he served on a committee that managed several international equity funds. He is a chartered financial analyst who first got into investing as a teenager, when his parents gave him $10,000 to invest toward a down payment on a house. JANUARY 2008 MUTUAL FUND RISING STARS 17
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