To: manohar kanuri who wrote (3669 ) 2/4/2000 1:36:00 PM From: Edwin S. Fujinaka Read Replies (2) | Respond to
I suspect that there are a couple of reasons why some mutual fund managers are reluctant to buy Softbank. I should mention that Netconductor himself has found that 281 (or thereabouts) funds did indeed already own Softbank. The pink sheet spread would widen if a large order were placed. For Softbank, this morning, the Schwab bid was $1280 and asked was $1330. This implies a retail margin to the marketmakers of $50/share or 4%, while Jacobs Fund is limited to 2% of capital for the entire year as total management expenses. Then there is the ego factor. Softbank is already a diversified "holding company" and already pretty well managed. For a mutual fund manager to buy such a company is kinda conceding that there is another pretty good fund manager out there. What self respecting mutual fund manager does not think he can beat other managers of investments? Of course, as we all know, Softbank is much more than just a collection of investments like a mutual fund. The Softbank parts work together to enhance the value of each part. Then, of course, the Softbank brand name enhances the status of it's member parts and gives each of them increased credibility.
