From The Wall Street Journal
Magellan is asking its shareholders to approve a plan that would let Magellan invest up to 25% of its assets in a single company. That's lot of money for the $100 billion-plus investment pool, which is now only allowed to invest up to 5% of its assets in one company. By accumulating certain investments, especially large, rapid-growing companies like General Electric Co., Cisco Systems Inc. and Home Depot Inc., the fund has managed to outperform the market. As of Sept. 30, Magellan held 4.7% of the fund in General Electric as its top holding and 4.6% in Microsoft Corp., its No. 2 position. Last year, Magellan returned 24.1%, 2.8 percentage points ahead of the S&P 500's total return, according to Morningstar Inc.
The Boston Globe
Post buys the manager
From The New York
As reported yesterday by The MFWire.com, Bill Miller, a portfolio manager at Legg Mason, oversees the only fund that has managed to beat the returns of the S&P 500 for nine years running. Now he will also be managing a new Legg Mason launch, a New Opportunity fund. The new fund has already attracted about $150 million in assets from investors who are eager to share in the Miller magic. The Post columnist says that she often warns against new launches, "But I have also recommended buying the manager, not the fund. In this case, where the two pieces of advice seem contradictory, I feel confident backing Miller's new venture."
Investors try to beat industry
From CBS MarketWatch
Those who run Charles Schwab's no-load funds "supermarket" noticed early in 1999 that a growing minority of investors held fund shares less than six months, even though two-thirds hang on to their investments for more than three years. In response, in February, Schwab started charging 0.75% of principal, with a minimum $39 fee and maximum $299, if an investor wants to sell fund shares less than 180 days after purchase. Short term capital gains is not enough of a deterrent. Investors are expecting quick gains, which is partly fed by the investment industry itself along with some in the financial media. In part, when the mutual fund industry advertises short term gains investors feel the need to keep up with the same numbers.
Kinetics kicks off four new funds
From CBS MarketWatch
As we reported yesterday, Kinetics Asset Management started the year by launching four niche Internet funds. The $1 billion Internet Fund closed out 1999 gaining 216% for the year. Each of the new funds remain "pure-play" funds but are designed to target specific segments within the Internet sector. The new funds include: The Internet New Paradigm, The Internet Infrastructure, The Internet Emerging Growth and The Internet Global Growth funds. With the addition of The Medical Fund, started last September, there are now total of six no-load mutual funds in the Kinetics family.
Stay ahead of the news ... Sign up for our email alerts now