NEW YORK, Nov 15 - The Monument Funds Group of Bethesda, Md., on Wednesday announced the launch of a new mutual fund that will invest in “post-sequencing” genomics companies.
The Monument Genomics Fund will invest primarily in equity securities of companies involved in developing technologies, processes, or services for the genomics sector. The fund will consider investments in companies that develop bioinformatics platforms, gene mapping and sequencing tools, as well as gene delivery technologies.
Alidad Mireskandari, who holds an MBA and a PhD in genetics, will manage the fund. He said that the he would focus primarily on companies in the post-sequencing stage and was not interested in companies that use subscription-based models for generating revenues.
“I have little interest in subscription companies, like Incyte. I like companies that are using software to decipher gene sequences like Rosetta or Compugen,” said Mireskandari, who was also critical of Celera Genomics.
“I really think the business model advocated by subscription providers is not going to be able to sustain their growth at a 20 to 50 percent clip. You can't be a one trick pony any more,” he added.
Mireskandari said that Exelixis, Lexicon Genetics, and Genomic Solutions were among his favorite picks.
The fund, which does not yet have any investors, will be available toward the end of the week. The size of the fund will be based on demand. The fund carries a load of 5.7 percent.