Israeli Stocks Shine Through Political Fog

Considering its diminutive size, Israel garners an inordinate share of global headlines. That's been even more evident in recent weeks, as the nuclear threat from Iran, a Palestinian election and the major illness of Prime Minister Ariel Sharon have kept the country on the front page.

Mutual fund manager Gadi Beer, however, wonders why the press doesn't often feature Israel in the business section as well.

Beer, portfolio manager for the $13 million (AMDEX Quote)AMIDEX35 Israel index fund, says investors should look past the geopolitical news and focus more intently on the growth of Israel's economy and its burgeoning stock market. Beer's fund tracks the 35 largest stocks in Israel, with Teva Pharmaceuticals(TEVA Quote) as its biggest holding, comprising 18.5% of the fund's assets. Other large holdings in the fund include well-known tech companies Amdocs(DOX Quote), Check Point Software(CHKP Quote) and Comverse Technology(CMVT Quote). The AMIDEX35 Israel fund is up 2.25% year to date after rising 14.2% in 2005 and 14.9% in 2004, according to Morningstar. ...