This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Net Stocks Still Shine for Mitchell Rubin

Many companies tried to dominate the business of Web searching back during the Internet bubble, but only the trio of Google (GOOG), Microsoft (MSFT - Get Report) and Yahoo! (YHOO - Get Report) emerged as the true 800-pound gorillas in the space.

Unfortunately, that's a lot of gorillas, even in a space as vast as the Internet.

Mitchell Rubin, portfolio manager of the $141 million (BIOPX) Baron iOpportunity fund, says the shift in advertising dollars from traditional to online media will keep all three giants well fed for the time being. But he says Microsoft may have trouble keeping pace in the long run and could be better off simply sticking with software. Rubin's fund, which specializes in Internet-related stocks, is up 2.64% year to date, and has returned 5.3% annually over the past five years. recently chatted with Rubin to find out more about his Internet strategy and ask him about that long-awaited fourth-quarter tech rally.

What is your stock-picking strategy?

We look for companies with open-ended opportunities created by the Internet or information technology. The fund is diversified in that we own companies in a lot of different industries, but the basic underlying theme is that the future profits of the firm will be driven by the adoption of the Internet or information technology. With that as a screen for the universe, we look for great companies with a competitive long-term advantage and strong management.

We also seek companies with long-term earnings power that the market may not currently be recognizing. In the end, our goal is to find stocks that can double in the next three to five years.

It's getting close to Thanksgiving. Where is that fourth-quarter technology rally we kept hearing about earlier this year?

We don't give the seasonality of the sector much thought. We worry about owning companies that we are going to make doubles and triples on over the next three to five years. So if they rally at Christmas or slump in the summer, we don't worry too much about that.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
HOMS $0.41 -21.31%
EBAY $58.38 0.81%
GOOG $571.34 2.32%
IACI $68.53 1.65%
MNST $141.23 0.08%


DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs