Van Wagoner Funds at Risk of 'Expense Trap'

The Van Wagoner funds had a great month in May.

But the group's recent success raises a question: Does the recent success of the Van Wagoner funds signal a rebirth of the long-comatose group, or was the bounce just a brief spasm in what might be looking more like a prolonged death spiral?

Given that it has been close to a decade since any really positive words could, with honesty, preface remarks about the performance of Van Wagoner funds, it would seem premature to be celebrating the rebirth of that group.

A look beyond the recent bounce in the funds shows a situation that afflicts many mutual funds, a condition that frequently proves terminal. Read a primer on how to detect "death spiral" conditions here. ...