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) and Yahoo! (YHOO) 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.
TheStreet.com 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?
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV