Funds Notebook: Stake in Hot IPO Gives IAI Funds Moment in Spotlight

Two Investment Advisors, or IAI, funds racked up spectacular double-digit returns last week thanks to a big stake in a technology company that recently went public.

(IAAPX Quote)IAI Value jumped 28.7% while (IAEGX Quote)Emerging Growth shot up 21.7% in the five trading days through Feb. 4, according to Lipper.

Both funds, which had unspectacular returns for 1998, got a boost from the same small stock, Tut Systems (TUTS Quote), which went public Jan. 29 at 18 a share. By the end of its first trading day, shares in the communications equipment company closed up 219% at 57 1/2. The stock closed Monday at 62 1/2. ...