R. Stephen's Callinan Picks Small, Growth Cos For Fund
Dow Jones Newswires
NEW YORK -- Jim Callinan, portfolio manager of the Robertson Stephens & Co. Emerging Growth Fund, follows a few simple principles when he picks stocks for his highly successful fund.
"Primarily we're looking for the fastest (growing) small companies in the United States," said Callinan in a CNBC interview Wednesday.
"We're also looking for companies gaining market share in emerging growth spaces," such as the wireless Internet arena.
About 50% of Callinan's portfolio is in technology stocks: 37% in product technology and 13% in technology services and system integrators.
In the latter group, Callinan mentioned holdings in Mypoints.com Inc. (MYPT), Netcentives Inc. (NCNT), DoubleClick Inc. (DCLK), Scient Corp. (SCNT) and Viant Corp. (VIAN).
Callinan said he sells when companies no longer fit his buy profile or if they make "huge parabolic price moves." Big gains are a sign to take profits because they are unlikely to be sustainable and are often driven by illiquidity in the Nasdaq market.
One of Callinan's favorite companies is Immersion Corp. (IMMR), a joy-stick company whose technology brings the sense of touch to the Internet, personal computing and gaming equipment.
He also likes RealNetworks Inc. (RNWK), which he predicted "will be the Yahoo of the next age" thanks to the rise of DSL Internet transmission, as well as Foundry Networks Inc. (FDRY) and F5 Networks Inc. (FFIV).
-Riva Richmond; Dow Jones Newswires; 201-938-4046
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