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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: John Rieman who wrote (33068)	5/8/1998 3:58:00 PM
From: DiViT	Read Replies (1) \| Respond to of 50808

Gintel on Cube............. Making Money In Mutuals Concentration Worked For Gintel In April Peter McKenna 05/08/98 Investor's Business Daily Page B2 (Copyright Investor's Business Daily, Inc. 1998. To Subscribe Call (800) 733-8900.) Green Tree, CheckFree Helped Managers Post 12% Gain Gintel Fund rose 12% in April, making it one of the top-performing funds for the month. It wasn't an easy month, either. The S&P 500 scratched out a 0.88% gain after surviving a nasty three-day plunge. The fund, which was started by Robert Gintel in 1981, is up 11% so far this year, behind the S&P 500's 16% rise. But the $200 million fund carries an A grade from IBD, ranking it among the top 10% of funds with its 36-month total return of 122%. Earlier this week, we asked Gintel, 70, and co-manager Cecil Godman, 38, what worked for the fund last month and how their holdings are positioned going forward. IBD: Gintel fund gained in April, a bad month overall. Why? Godman: We take large positions in just a few stocks. Some of these stocks did well last month. IBD: How many stocks does the fund hold? Gintel: We have 23 holdings and assets of $200 million. Currently, 65% of the assets are invested in seven stocks. IBD: Maintaining such a small portfolio sounds a bit risky. Godman: Not if your research is good and you pick the right stocks. If your picks are good, the risk is actually lower than having a lot of stocks. IBD: That would be a tough theory to prove. Godman: Well . . . the S&P 500 is used as the benchmark for diversity, and the Gintel Fund has beaten the S&P during the last five years. We mitigate risk by picking the right stocks and holding them for an average of two to five years. IBD: OK, let's talk about stock picking. What stocks drove your performance in April? [snip] IBD: It looks like we can't argue with your stock picking. What do you look for in a stock? But first, what's the one loser in the portfolio? Gintel: It's C Cube Microsystems. We have a $300,000 unrealized loss on a $5 million investment. We haven't given up on this stock. It's a digital video disc company; when the DVD industry takes off, C Cube should do well." [snip]