ClosedFund: Seeking Buyer, MetaMarkets Shuts Down Funds

The first funds to open their portfolios to investors shut their doors Thursday, proving once more that economics trump ethics in the investing game.

The $9.9 million (OPENX Quote)OpenFund and its sibling $1.1 million IPO & New Era fund, both hit hard by the Nasdaq Composite's 45% plunge over the past year, closed Thursday. The aggressive and tech-heavy growth funds, run by a team of managers at San Francisco-based MetaMarkets.com, will liquidate their positions and return shareholders' money, according to a posting on the firm's Web site. Co-founder Don Luskin said the firm was "basically done" selling its holdings by midday Thursday. MetaMarkets.com also hired investment bank Allen & Co. to seek a buyer for the firm.

The OpenFund, launched on Aug. 31, 1999, amid tech-sector froth, rang up an 89% gain in its first quarter, according to Chicago fund-tracker Morningstar. But the mercurial sector buckled, and the fund lost more than half its value over the past year. The IPO & New Era fund, launched Sept. 11, 2000, is down more than 56% since its inception. Still, the OpenFund's 7% loss since its inception isn't as bad as the Nasdaq Composite's 25% fall over the same period.

Different Breed?

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