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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: DOUG H who wrote (5262)	4/1/1999 12:08:00 PM
From: Albert Youssef	Read Replies (1) \| Respond to of 17183

You're not missing anything. However, when people are trying to evaluate which fund to buy, they look not only at the funds performance but at the top holdings of the fund. So if you're looking at fund A, and you see that their top ten holdings as of 3/31/99 include AOL, CSCO and EMC, and you specifically would want a fund that has high exposure to those three companies, you might be more inclined to buy that particular fund and even forgive a couple of points of underperformance. The catch is you'd have no way of knowing what they were really holding through the quarter. Window dressing is a marketing tool (and one that I personally think is dishonest).

To: DOUG H who wrote (5262)	4/1/1999 1:35:00 PM
From: SJS	Read Replies (1) \| Respond to of 17183

When I look at the quarterly reports, I want to see that my fund manager is on top of things and has picked/is picking the right stocks for the type of fund I buy. If I am in a technology fund, or one that holds 15-20% of the fund in tech stocks, and EMC is NOT either on the list at all, or well represented on the list, I would CONSIDER moving my money to a fund that better represent my interests. That fact makes fund managers review their holding to "follow" the leaders, and show their constituent holder that they are "picking" wisely. Both you and I know that we can really never figure out exactly when the fund manager bought EMC. They know that too. It's somewhat of a psychological game, but it matters greatly that they "dress" the portfolio to look good for their customers' review. Steve