As IPO Market Cools, a Fund That Buys Them Reopens to Investors

Humbled by investors' sudden aversion to risky tech stocks, the H&Q IPO & Emerging Company fund will reopen to new investors tomorrow.

Once as hot as the IPO shares it primarily buys, the fund's net asset value is down almost 40% over the past month as the once-sizzling IPO market has cooled.

The combination of a shrinking asset base and a rise in stocks selling at more attractive valuations may convince a number of closed funds to throw open their doors soon. "If I were a tech fund manager I'd love to get some cash right now," said Morningstar analyst Russ Kinnel. ...