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To: Jorge who wrote (6653)	3/15/1999 4:29:00 AM
From: Vendit™	Respond to of 41369

The massive Munder NetNet fund has grown from $125 million last November to $1.05 billion last week. And Jacob's Internet Fund has been buying Internet stocks so furiously that he's gone from about 30% cash in January to 12% last week, amid exponential growth. And this may be just be the beginning, 'cause the big boys are coming. "Among the big funds, we've seen a definite shift in attitude," says Jacob. "Most institutional investors saw the Internet as a curiosity, and if they wanted to play in this sector they bought AOL (AOL:NYSE). Now they're starting to do some research in these companies, taking a hard look at some as investments. Attitudes have changed. I mean, you read all these stories about how day traders were driving up Internet stocks in January, and then this month, low and behold, you see Fidelity disclose that it owns 8% of Lycos (LCOS:Nasdaq). Those weren't day traders buying all that stock." At the recent Hambrecht & Quist planet.wall.street conference, attendance went beyond the die-hard Net devotees. The big funds now mingled with the upstart Internet fund investors. "I think that supply and demand will drive Internet stocks more than valuation," says Arden Armstrong, manager of the MAS Mid-Cap Growth fund. "In these next few months, I think that will be the driver." Indeed, with Net stocks in these last few weeks, there have been, quite simply, more buyers than sellers -- supply has been outstripped by rapacious demand. "Two years ago the people at our conference were the early adopters -- geeks if you will," says analyst Danny Rimer, who heads H&Q's Internet research group. "But this year, we're crossing over into the early mainstream adopters of Net stocks. Really, the adoption of Internet stocks into mainstream portfolios is much like the adoption of the Internet into mainstream society. thestreet.com