10 Questions: Prudent Bear Fund Manager David Tice

Skepticism has never been so profitable -- nor so chic. But even in this topsy-turvy world in which corporate accounting seems sexy and telecom couldn't be less cool, David Tice still finds himself a Cassandra among optimists.

Tice founded his eponymous research firm in 1988 to provide clients with earnings warnings and sell recommendations through his Behind the Numbers publication. He launched the (BEARX Quote)Prudent Bear fund in 1995 to serve as a "net-short" hedge to the U.S. stock market, and the (PSAFX Quote)Prudent Safe Harbor fund in 2000 to benefit from a weakening U.S. dollar and rising gold prices. Prudent Bear is up 20.5% in 2002; the fund's 8.47% gain last week made it one of the five best-performing funds according to Lipper.

So with the S&P 500 down 5.5% for the year and short-sellers appearing more savvy than vicious, is Tice feeling good? How good can a short-seller feel two years into a bear market? Read on. ...