I Own What?! Net Funds' Odd Innards
You might not expect a Net fund to invest your money in companies that make chocolates or batteries or coffee tables, but it might do just that.
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"Is there any part of the economy where the Net isn't involved now?" asks Chris Traulsen, a Net and tech-fund analyst with Chicago fund tracker Morningstar. "It's easy to make an argument for owning a wide spectrum of stocks in a Net fund." The upshot: There might not be another fund type that better illustrates why you can't assume where a fund will invest your money given its name or classification than Net funds. The broker-sold (GITAX Quote)Goldman Sachs Internet Tollkeeper fund, for instance, had just half of its $817 million in tech stocks at the end of October. Among its holdings were battery maker Energizer, movie studio Metro-Goldwyn-Mayer(MGM Quote), Spanish-language TV broadcaster Univision(UVN Quote) and radio broadcaster Westwood One(WON Quote). The fund is down 33.9% over the past year, compared with a 41% fall for the tech-fund category in which Net funds are classified. The no-load (IMLLX Quote)iMillennium fund has about 28% of its money in tech stocks. Its holdings include financial companies such as American Express(AXP Quote), H&R Block(HRB Quote) and, ironically enough, Berkshire Hathaway
| A Puzzling Portfolio Net funds hold these stocks, though you might wonder why |
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| Net Stock? | Main Business | Net Fund |
| ADP | Payroll processing | Pilgrim Internet |
| American Express | Financial services and travel | iMillennium |
| Berkshire Hathaway | Insurance and consumer products | iMillennium |
| Energizer | Batteries | Goldman Sachs Internet Tollkeeper |
| Ethan Allen Interiors | Furniture | iMillennium |
| H&R Block | Tax preparation | iMillennium |
| Marvel Enterprises | Toys | Kinetics Internet |
| Metro-Goldwyn-Mayer | Movies | Goldman Sachs Internet Tollkeeper |
| Oakley | Sunglasses, goggles, watches | RS Internet Age |
| Office Depot | Office products retailer | iMillennium |
| Ritchie Brothers Auctioneers | Auctioning industrial equipment | Kinetics Internet Infrastructure |
| Rocky Mountain Chocolate Factory | Chocolates | iMillennium |
| Tredegar | Plastic and metal packaging | Kinetics Internet Emerging Growth |
| Univision | Spanish-language broadcasting | Goldman Sachs Internet Tollkeeper |
| Westwood One | Radio broadcasting | Goldman Sachs Internet Tollkeeper |
| Sources: Morningstar, fund company Web sites, Lionshares.com. | ||
| Pure Pain Dot-coms rose higher and fell harder than most tech stocks |
| Source: Baseline/Thomson Financial. Returns through Dec. 3. |
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