Dear Evergrowth Investors,
Our September financial report and your individual investor statements have been sent to your email. Please check your inbox.
We started with just a little over $1 million in AUM, and we have now surpassed $3.6 million. If our recent momentum continues, I expect us to surpass $3.7 million by year-end.
September was a very strong month for the fund, driven largely by substantial appreciation in our biggest holding, GRAIL (GRAL), following favorable FDA advisory committee votes supporting approval of its Galleri multi-cancer detection test. This is an encouraging milestone, although the final FDA approval decision remains pending.
A few of our early investors have now earned cumulative returns exceeding 108%—more than doubling their original investment. This is consistent with my expectation that their investments could double roughly every three years. Two of our investors also now have individual investment balances exceeding $500,000. These are meaningful milestones, although future returns will vary.
I am not selling a single share of GRAL. My conviction remains strong, and I intend to hold for the long term, giving the company time to execute and our investment room to grow.
I have also been searching for potential 100X winners. A $200,000–$300,000 investment that grows 100-fold over the next 5–10 years would become worth $20–$30 million on its own. At the upper end, one such holding could take our fund beyond $30 million in AUM without additional investor contributions, depending on the rest of the portfolio, fees, and withdrawals. That possibility makes me optimistic about our future, although it is an ambitious goal rather than a guaranteed outcome.
Some positions will inevitably decline. We do not need every stock to be a winner. A few of our largest holdings delivering multiple-fold gains can more than offset losses elsewhere and drive strong overall returns. That is how I believe we can outperform the market over time.
Patience is the key. When we hold a basket of fundamentally robust biotech companies, time can work in our favor as their scientific and commercial progress develops. We will continue monitoring those fundamentals while giving our strongest investments time to compound.
Congrats! And thank you for your continued trust and partnership.
To your success!
Dr. Harvey Tran
Disclaimer: This update is for informational purposes only and is not an offer to sell or a solicitation to invest in EBHC. September financial figures are unaudited. Past performance does not guarantee future results, and individual investor returns may differ based on investment timing, fees, and withdrawals. Statements about future returns, 100X investments, portfolio growth, and year-end AUM reflect current expectations and hypothetical scenarios, not promises or guarantees. Biotech investments involve substantial risk, including the possible loss of your entire investment. FDA advisory committee recommendations do not constitute final FDA approval. Holdings and investment decisions may change.
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