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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (22276)	10/22/2001 2:31:22 PM
From: stockman_scott	Respond to of 52237

Van Wagoner buying software stocks By Justin Wiser, CBS.MarketWatch.com Last Update: 2:02 PM ET Oct. 22, 2001 SAN FRANCISCO (CBS.MW) - Renowned tech investor Garrett Van Wagoner took advantage of weakness in the third quarter to pick up battered software stocks, according to regulatory filings. Van Wagoner -- who rode 1999's bull market to triple-digit gains in all five of his mutual funds -- added to positions in companies such as Quest Software (QSFT: news, chart, profile) and I-Many (IMNY: news, chart, profile) he revealed in a holdings report filed with the SEC on Friday. The quarterly filing, which details all holdings as of September 30, also showed that Web software maker Interwoven (IWOV: news, chart, profile) continued to be Van Wagoner group's largest holding. (The filing does not break down holdings by each fund.) Still, software stocks have yet to boost sagging fund performance. "All year, his big bet has been that in a slowing environment, software is the place to be," said Chris Traulsen, a fund analyst with Morningstar. "It proved to be wrong -- it failed to take in account that these companies were pretty richly valued." The Van Wagoner funds have suffered mightily through the bear market -- all five have lost more than half their value this year. The Emerging Growth (VWEGX: news, chart, profile) and Technology (VWTKX: news, chart, profile) funds are off by 70 percent year-to-date. The company was not immediately available for comment. Bigger software stake Van Wagoner has been buying shares of several e-business software names in addition to I-Many. The company upped its stake in Embarcadero Technology (EMBT: news, chart, profile) to 3 million shares from 2.7 million shares over the quarter. Its stake in Actuate Corp. (ACTU: news, chart, profile) grew to 1.6 million shares from 870,000 shares, and its investment in MatrixOne (MONE: news, chart, profile) jumped to 1.5 million shares from 970,000 shares. All three stocks have rebounded from recent lows, but remain well off their 52-week highs. The company also added to its position in data storage software and services provider Storagenetworks (STOR: news, chart, profile), and now holds 4.9 million shares, up from 2.8 million. Van Wagoner closed out its position in a number of bellwether tech names during the third quarter, including Nokia, AOL Time Warner and Sun Microsystems. "It may be an indicator that he thinks there's better value to be found in the smaller names and their higher growth rates," Traulsen said. Garrett Van Wagoner founded Van Wagoner Capital Management in 1995 after establishing his reputation with success at the Govett Smaller Companies Fund during the early 1990s. Van Wagoner had $1.2 billion in assets under management as of June.