Investing October 12, 2001

Tech Funds Continued Descent in September

October 12, 2001 (PLANSPONSOR.com) - Against a backdrop of earnings warnings and overcapacity in the sector coupled with the terrorist attacks in September, Internet-focused funds plummeted by 19.0% on average over the month, according to Standard & Poor's, compared with a fall of 17.0% for the Nasdaq.
Reported by

Year-to-date, investments in the sector are down 46.5% as investor confidence has eroded. And if a lone success story were excluded, the average annual decline would have been 51.1%.

Internet funds that held up the best over the month had high cash positions and low exposures to popular, widely held Nasdaq stocks.

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This month’s better performing funds, in terms of returns in US dollars with dividends reinvested, include:

  • Potomac Internet/Short Fund, the best-performing fund among those that short Internet stocks – rose by 25.2%
  • Kinetics Internet Emerging Growth Fund, the best-performing among those that take long positions – fell by 5.6% over the month, but is up 0.3% over the quarter
  • iMillennium Fund, which invests in defensive stocks, fell by 11% in September.
  • Analysts Aggressive, holding 33% in cash, fell by 9.1%.

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