Hedge funds and mutual funds create hybrid
From The Wall Street Journal
More and more Wall Street firms are using the mutual fund outline to expand the market for hedge funds. Hybrid funds target a small segment of investors, but they're aiming to attract thousands from the investing public. Like standard hedge funds, these hybrid funds still require high minimum investments and charge high fees, and most keep tight controls on withdrawals. Most also are free to use a variety of risky techniques to pad their returns.

Vanguard makes no exception for Bogle
From The Washington Post
As covered in yesterday's Odd Lots, John C. Bogle, the founder of Vanguard Group will probably be asked to step down from the fund manager's board this December. The board's likely refusal to extend Bogle's term may be due to the differences between him and his successor, John Brennan. Observers say they have opposite views on discount securities brokerage. While Brennan wants to use Internet technology to build an online brokerage firm, Bogle is dead set against it.

Manager says almost entire sector is overvalued
From The Boston Globe
As manager of T. Rowe Price's $6.8 billion Science & Technology fund, Chip Morris has picked enough good technology stocks to generate an average annual return of 33% over the past five years. But he hasn't found an awful lot of Internet stocks to buy, he told shareholders early this year. He says that the valuation of almost every Internet-related company greatly exceeds any reasonable expectation of future economic returns, according to his and many others' method of valuing a company.

RhumbLine investment chief settles SEC allegations
From The Boston Herald
Bing Sung, former investment head Boston's RhumbLine Advisors, has agreed to leave the investment business for good and to pay a $50,000 fine, regulators said yesterday. The investment chief made a bad investment bet that cost the state pension fund $12 million. He says the mistake caused by a mathematical error. The SEC alleged that Sung made unauthorized trades in 1996 and hid losses caused by complex options investments. His bad bets also cost AT&T Corp.'s pension fund $150 million.  

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