The most notable encapsulated fungus is Cryptococcus neoformans, a basidiomycetous yeast-like fungus. It is the primary etiological agent of cryptococcosis, which can lead to severe conditions such as cryptococcal meningitis. The capsule is composed mainly of glucuronoxylomannan (GXM), a polysaccharide that aids in the fungus's virulence by evading the host's immune response.