Ryan Jacob, who left the
Internet fund last month after producing triple-digit returns, will launch his own Internet-focused fund by late summer.
Jacob said Wednesday the
fund will be a no-load fund and will have an annual expense ratio of 1.91%. It will require a minimum initial investment of $2,500 for nonretirement accounts.
It is the sole offering, thus far, of Jacob's newly launched
Jacob Asset Management.
"We intend to establish a concentrated portfolio of the best Internet-centric companies," says Jacob, who will serve as the fund's chief portfolio manager. He wouldn't discuss specific stocks while his fund goes through the registration process with the
Securities and Exchange Commission
, but he said companies in the fund would have "a strict focus on the Internet."
While Jacob occasionally invested in some non-Internet telecommunication names like
, his focus on Net stocks resulted in a top-ranked, 196.1% return for the Internet fund in 1998. For the twelve months leading up to his resignation at the end of June, he posted a 252.6% return.
Jacob has not commented publicly on the reasons for his departure from the Internet fund. But his resignation closely followed a failed sale of the fund to
Lepercq de Neuflize
, a money management firm in New York where Jacob kept his offices. Lepercq will be the distributor of the new fund, according to an SEC filing.
Other names he held in the Internet fund include
. But Jacob says things change so fast in the Internet sector that stocks from his past portfolios may not show up in his new one.
"In this sector, things can change so quickly," Jacob says. "Even since I've left the Internet fund there have been a number of changes and acquisitions that have impacted the space."
The fund will focus on media and content providers, infrastructure, communications companies and e-commerce endeavors, Jacob says.
It's a space he knows well. Before taking over the management of the Internet fund in late 1997, Jacob worked as director of research at the
IPO Value Monitor
. That experience, he has said, helped give him a familiarity with many of the small Internet companies that rocketed after their initial public offerings.
He'll have the analyst who worked with him on the Internet fund, Mike Dubrow, at his side on Jacob Internet. Also joining him will be Darren Chervitz, who's worked as a reporter for
, covering the IPO and Internet sectors.
Jacob says that while the number of Internet-focused funds is increasing, he's confident his track record will help him stand out.
"I have one of the longest track records in the space," Jacob says. "We've shown the ability to outperform in up and down markets. That's been critical in the past and will be critical in the future."
Editor-at-Large Cory Johnson contributed to this report.