New Mutual Fund Bets on the House

Every gambler knows the house always wins. So doesn't it make sense to try to be the house?

That's what Dan Ahrens was thinking back in 2005. He was the founder of Mutuals.com's politically incorrect (VICEX Quote)Vice Fund (VICEX) and author of "Investing in Vice: The Recession-Proof Portfolio of Booze, Bets, Bombs & Butts."

So when he went independent, he launched the (GACFX Quote)Gaming & Casino Fund (GACFX). It's coming up for its first anniversary

This fund is a great idea. It gives you a cheap and diversified way to play the slots and the roulette wheels from the winning side of the table for a change. And it lets you spread your bets, instead of trying to pick one or two individual winners.

The fund holds shares in 40 different companies from slot-machine makers to casino operators, from regional players to Las Vegas and the new Chinese hot-spot of Macau.

But it's proven a tough sell, and Ahrens has raised just $3 million in assets so far -- not even enough for an ante in the high rollers' world of mutual funds. "I haven't spent any money on marketing or distribution," he explained when we spoke this week. "It costs a lot to start a fund."

So he's struck a deal that should finally get things moving. He's handing over the fund's marketing and administration to New York investment advisers Ladenburg Thalmann. The announcement may come as early as today.