It's been a tough week for Robert Sanborn.

On Tuesday, Sanborn

stepped down as portfolio manager of the sagging, $2.7 billion

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Oakmark fund. As a consequence of that move,

Masters' Select Funds

on Thursday replaced Sanborn on its $449 million

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Equity fund with another big-name value manager, Bill Miller.

Equity is a multi-manager, or "all-star" fund, meaning its assets are divided among a few well-regarded money managers -- in this case, five -- with divergent styles. Each manager picks just 15 stocks for the all-cap stock fund, and Miller will inherit Sanborn's 20% of the portfolio.

Equity's other managers are Shelby and Chris Davis (from

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Davis New York Venture), Foster Friess (from

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Brandywine), Mason Hawkins (from

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Longleaf Partners), Sig Segalas (from

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Harbor Capital Appreciation) and Dick Weiss (from

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Strong Opportunity).

Sanborn stuck to his deep-value guns, shunning tech stocks in a growth market, and Oakmark struggled mightily over the past few years. Miller's value approach has been markedly more successful. His

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Legg Mason Value Trust is the only stock fund to beat the

S&P 500

in each of the past nine years.

Sanborn's struggles haven't weighed too heavily on Masters' Select Equity. It beats its peers over the past one- and three-year periods, according to

Morningstar

. Its 26% average annual return over the past three years matches the return of the S&P 500. Miller's three-year annualized return on Value Trust is 34.5%.

Egads! It's e-harmon Funds

Net guru Steve Harmon's Internet funds, which might offer a fresh twist on investing in the sector, should be available sometime next month.

Harmon's

Internet

fund will invest in Net companies of all types, defining them as companies that derive at least half their revenue from "Internet-related business activities," according to paperwork filed with the

Securities and Exchange Commission

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Thursday. A second fund, the

Net30 Index

, will invest in the top 30 Internet companies, ranked by total revenues. Both funds will be nondiversified, meaning they can invest up to 25% of their assets in one stock.

Harmon will co-manage each fund with Lisa Cavallari, who previously ran asset allocation funds for

Barclays Global Investors

.

Harmon is a Net expert, author and media darling. He first made a name for himself covering the Internet as a

Jupiter Communications

(JPTR)

analyst in the mid-1990s, then as an executive with

internet.com

(INTM)

, a news and information provider. He created Net stock indices at both those companies.

What's intriguing is that the funds are a subsidiary of

e-harmon.com

, which hopes to be a one-stop shop for investors looking for a piece of pre- and post-IPO Internet companies. If Harmon and his firm unearth some promising young companies, that could give him an edge over other managers.

But while Cavallari has an investment background, Harmon is a rookie fund manager.

The Internet fund has a pretty flexible approach to distribution, according to its filings. If you invest on your own, you can buy Class A shares without a sales charge direct from e-harmon. If you invest through a broker, Class A shares charge a maximum 5.75% front-end sales charge, while Class B and C shares' maximum back-end loads range from 1% to 5%. The index fund is no-load and doesn't appear to have broker-sold share classes.

The Internet fund charges a 1% redemption fee on shares sold within six months, while the index fund charges 0.5%. Annual expenses weren't disclosed in the filings.

Barr Rosenberg Small-Cap Fund Reopens

One of the better small-cap value funds is letting investors in again. Barr Rosenberg, home of much disparaged

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Market Neutral fund, is reopening its

(LIFUX)

U.S. Small Cap portfolio to new investors.

The Orinda, Calif.-based fund manager says it will reopen the $500 million fund because it has three new funds pending. It closed in December 1998. President and CEO Richard Saalfeld says the new offerings -- including a global market neutral fund -- will take pressure off U.S. Small Cap portfolio manager Floyd Coleman to find picks on his own.

Coleman has racked up a decent record in recent years -- particularly impressive given the fund's out-of-favor value objective. It has outperformed its peers for each of the last seven years, and managed a 15% return in 1999 when the rest of the small-cap-value heap returned only 4.8% on average.

Unfortunately, U.S. Small Cap's good fortunes haven't been shared by the better known Market Neutral portfolio. By going short on stocks and sectors he believes are heading for a fall, while remaining bullish on stocks with strong prospects, the portfolio manager is supposed to deliver solid returns regardless of what the market does.

But that doesn't appear to be the case. That fund has underperformed both the market and the domestic hybrid category for each of the last three years. Better stick to small value.

See More of Thursday's

Fund Openings, Closings, Manager Moves.

See Wednesday's

Fund Openings, Closings, Manager Moves.

See Monday's

Fund Openings, Closings, Manager Moves.