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The Hit List: These Tech Stocks May Be in the Line of Redemption Fire

 

Today, we told you redemptions from sagging tech funds could send tech stocks further down. Now, it's time to name names.

Cashing Out
Redemption-fueled selling may hammer tech funds and many tech stocks in 2001
The Short List: Cramer Says Hedgies Are Shorting the Stocks in Big Tech Funds
The Cruelest Month: February Was an Ugly One for Tech Funds
No Redemption: How Growth/Tech Funds Could Crush the Market
Stock Funds Feel New Pain: Net Cash Outflows

Here's the situation: The average tech fund has lost more than half its value over the past 12 months, according to Chicago-based fund-tracker Morningstar. This came as the category took in a record $44.5 billion last year, or more than 30 cents of every net dollar invested in stock funds. One of the fund world's rules is that steep inflows and inordinately bad performance are a recipe for high redemptions. If that happens to tech funds and tech-heavy growth funds, fund managers will be forced to sell stock to cash out investors, putting more pressure on their already ragged holdings. ...

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