Smarter Money: Steer Clear of the Latest Munder Fad - TheStreet

If you do the opposite of what Munder does, will you do well? During the height of the dot-com craze, when it was the worst possible moment to invest in the group, the Munder family of funds was all over us with a Net fund. Naturally, because it was topical, the Net fund got more than its fair share of TV time. It was, of course, the top, and you lost a ton of money throwing in your lot with these guys.

Now, I am seeing their silly windmill farm ads and hearing that "who would have thought" stuff again on television for a fund that invests in power and I am thinking, oh, heavens, doesn't anyone see the pattern?

These guys are the ultimate fund panderers. They invest in whatever is hot and they burn you just like that red-hot griddle at the Summit Diner. (I've been turned off by the change in grillmen at the Holland Tunnel diner and the fact that my last two egg sandwiches there could have used a hotter griddle.)

This fund pandering is obvious to everyone else in the mutual fund business. They know it is a shameless but foolproof way to attract assets at the top and they don't want to taint their records. The conventional press knows it too, but nobody knocks the bill payers at those shops.

Munder doesn't seem to care. It knows it can get away with it and take in the assets and make money off you before the fad ends in oblivion and ashes.

I would avoid any new Munder fund like the plague, especially this new power fund. It is a recipe for you to lose money. In fact, I would sell it short.

Don't let these panderers have your money. You deserve better.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to

jjcletters@thestreet.com.