Breaking story just went online at Smartmoney.com. Writer Danny
Hakim does it again with big news on technology funds. The
article covers the possibility that the ISDEX, Steve Harmon's
pioneer Internet stock index, may be tracked by a mutual fund.
First, my favorite excerpt below then some other important news in the
Internet-fund investing world. Full story at:
smartmoney.com
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Of course, investing in any narrow sector is risky. And Internet stocks -- with their extraordinarily high valuations -- are riskier than most. That's why most established fund companies don't bother. Vanguard spokesman Brian Mattes says the Internet is too "narrow a slice" of the market for a mutual fund. Besides, he says, starry-eyed Net investors might change their minds and abandon a fund if the hottest of sectors cools off. "If it looks like a bubble and smells like a bubble, it probably is a bubble," says Mattes. "Will investors stay after the bubble bursts? No."
Harmon has an answer for all his detractors: They just don't get it.
"To them, the Internet is a scary medium," he says. "They don't understand it and their lack of knowledge causes them fear. They don't have the competence to know which stocks to invest in, and their clients are conservative."
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My thoughts on the ISDEX:
forums.internet.com@^405441@.ee6b7b3/239
And someone else just posted this to the ISDEX forum (I can't confirm):
"The Blackriver Group will put out a Internet Index Fund that will track the ISDEX Index. The fund will go live sometime in July or August of this year. The Blackriver Group can be reached by mail or phone. The phone # 215-877-2171 and the address is P.O.B. 9553 Wilmington, Delaware 19809. I for one will be glad when this fund hits the street."
IN RELATED NEWS:
Portfolio manager Alexander Cheung of Monument Internet Fund will
participate in a 2 hour chat tonight beginning 7PM EST:
mfmag.com
For those who cannot attend, a transcript will be archived at the
site shortly afterwards.
On Tuesday, May 18, The Wall Street Journal will host
Munder Net Net's portfolio manager Paul Cook at 8 p.m. EDT.
This chat is part of their Voices Events page:
wsj.com
Earlier, they hosted chats on Internet funds with Christine Benz
of Morningstar and Ryan Jacob of The Internet Fund. I posted a
copy of these transcripts on my webpage (I hope WSJ doesn't mind
my possibly copyright violation).
"Fund Investors Get Two New Internet Plays" by Joe Bousquin of TheStreet.com:
thestreet.com
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