Net Outflows: What's Going to Happen to All Those Internet Funds?

Wednesday

Adam Lashinsky on the State of the Internet

Dan Colarusso on Internet Growth Projections

Katherine Hobson on E-tailers' Push for Profitability

Catherine Valenti on Ailing Internet Funds

Jamie Heller on Using the Net to Track Net Stocks

Thursday

Tracy Byrnes on the Frenzy Next Time

George Mannes on Self-Hating Dot-Coms

K.C. Swanson on Old Economy Winners

David Gaffen on Measuring the Internet Economy

Friday

Ian McDonald on 'Butterfly' Companies

Justin Lahart on Real Net Valuations

Joe Bousquin on Building the Perfect Net Company

A Dan Gross Opinion Piece: Were the Old Guys Right?

TSC Roundtable on Predicting Six-Month Winners

Roland Jones on The Last Days of Daytrading

Eric Gillin on Working for a Dot-Com

Is the wrecking ball that shattered the performance of Internet stocks this year now aiming for Internet funds?

The tech selloff that began last spring has wreaked havoc with Internet fund performance, sending many funds that saw triple-digit gains last year well into negative territory. Internet funds have lost an average of 25% since the beginning of this year, according to Morningstar, and investors haven't taken the carnage lying down.

Indeed, many investors have been running for the exits since the spring selloff. A look by Financial Research Corp. at 21 Internet funds shows that many of those funds have seen net outflows since May. The biggest toll so far came in July, when funds in the group had $183 million in net outflows, according to FRC. That's a far cry from the trend earlier this year, when in March the funds looked at showed as much as $2.5 billion of net inflows. Because flows into sector-specific mutual funds are a useful barometer of individual investor sentiment, it's crystal clear that a large swath of Main Street investors has given up the Net ghost. ...