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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (13982)	2/8/1998 9:38:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 94695

Hi Bill; Tis more than I can explain, it depends on how the fund is set up, found in the prospectus. Some funds can margin up to 20%..and yes they have negitive cash when they do. And the negitive is on the balance sheet ( at the bottom of the ones I looked at ). Also these funds often have a line of credit, with banks to cover redemptions in the event of a run, so they will not have to sell stocks they want to hold during thoes times. Last April had many of them borrowing money as people bailed out. I think they cut back on margins some after that <G>. But yes they can if it's in their charter, go on margins, short, borrow money and all those nice things. These are agressive funds. To see cash in them is sort of rare, and as of the first of the year the ones I looked at all had cash, I assume most of them still do. I was shocked to see KAUFX with 10% cash, and SPEQX with 7%..take it from there. Jim