eBay: The Sweetheart of the Fund Managers

Fidelity and TCW Asset Management also had actively managed funds that upped their eBay investments in the first quarter. Fidelity, for instance, the institution with the fourth-largest eBay stake, purchased 3.2 million shares in the quarter. Meanwhile, TCW Asset Management, the sixth-largest eBay stakeholder, purchased another 3.6 million shares.

TCW's flagship portfolio bought into eBay in the last year, helping increase the company's overall stake, said Mike Utley, a TCW spokesman. Utley did not say why the company bought into eBay. The research analyst who covers eBay for TCW was not immediately available for comment.

Fidelity does not talk about individual stocks within its portfolio, a company spokesperson said.

Some Sold

Not all institutions bought eBay stock in the quarter. Some 34 institutions sold their entire eBay stakes -- about 1.9 million shares -- in the first quarter, according to data from LionShares. Another 164 institutions sold parts of their eBay holdings -- some 17.2 million shares.

Janus was the big seller of eBay shares among institutional investors, selling off nearly 3 million shares in the quarter, decreasing its stake to 12.8 million, according to LionShares. All of Janus' funds are actively managed, said Jeff Snyder, a company spokesman. Snyder declined to comment on why Janus sold its shares.

eBay's valuation could be a part of the reason for the selling. The company's stock is now trading at about 70 times its projected 2003 earnings, not including the cost of stock options.

Many of the institutional holders are technology funds that have held the stock for years, said one portfolio manager who asked not to be named. As the stock jumped late last year and early this year, many sold off parts of their holdings, the portfolio manager said.

"They are all kicking themselves for selling as early as they did," the portfolio manager said.