The Jacob Internet Fund was started Dec. 31, 1999, three months before the technology bubble burst. Since then, the fund has dropped an annual average of 13%. This year, it's risen 12%, beating the Nasdaq's 8.8% increase.
Apple, Google and Netflix comprise 16% of the mutual fund. Apple and Google were the Jacob Internet Fund's top two holdings at the end of February. Netflix was No. 11.Welcome to TheStreet.com's Fund Manager Five Spot, where America's top mutual fund managers give their best stock picks and views on the market in a five-question format. Will tech continue to lead the stock market higher? Jacob: I think so. Tech is clearly seeing secular growth here. The overall economy has been improving even in a gradual way. And the earnings have been very strong and we expect it to continue. There's been a lot of worry about Google, particularly with the company's exit from China. Are you worried as well? Jacob: No. There's a lot of concern because they are pulling out of China. And, unfortunately, they will probably never be able to regain the kind of position they would like there. But the rest of their business is very strong. They will benefit from an uplift in ad spending, and their position has never been more secure here in the U.S. Can Apple continue to launch one smash hit after another? Jacob: Apple has shown a proven ability to roll out new products very successfully. The iPad is starting off slowly, but I think it will pick up steam and be a significant product for them. And there are a lot of catalysts for Apple in the future and for that reason we are very positive on it. Netflix (NFLX) has risen 82% this year. How high can the stock go? Jacob: Netflix has had a very good year, but we still think the fundamentals are strong and the share price still looks attractive to us. The value proposition has improved with more streaming, more devices. And, competitively, with Blockbuster (BBI) shrinking, they have been able to gain a lot of share. So it's really still a good proposition.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV