Apple, Google Top Internet Fund Holdings

NEW YORK (TheStreet) -- Apple (AAPL), Google (GOOG) and Netflix (NFLX) are among the top choices of Ryan Jacob, manager of the Jacob Internet Fund (JAMFX).

The Jacob Internet Fund was started Dec. 31, 1999, three months before the technology bubble burst. Since then, the fund has dropped an annual average of 13%. This year, it's risen 12%, beating the Nasdaq's 8.8% increase.

Speechless No More (Forbes)

Apple, Google and Netflix comprise 16% of the mutual fund. Apple and Google were the Jacob Internet Fund's top two holdings at the end of February. Netflix was No. 11.

Welcome to TheStreet.com's Fund Manager Five Spot, where America's top mutual fund managers give their best stock picks and views on the market in a five-question format.

Will tech continue to lead the stock market higher?

Jacob: I think so. Tech is clearly seeing secular growth here. The overall economy has been improving even in a gradual way. And the earnings have been very strong and we expect it to continue.

There's been a lot of worry about Google, particularly with the company's exit from China. Are you worried as well?

Jacob: No. There's a lot of concern because they are pulling out of China. And, unfortunately, they will probably never be able to regain the kind of position they would like there. But the rest of their business is very strong. They will benefit from an uplift in ad spending, and their position has never been more secure here in the U.S.

Can Apple continue to launch one smash hit after another?

Jacob: Apple has shown a proven ability to roll out new products very successfully. The iPad is starting off slowly, but I think it will pick up steam and be a significant product for them. And there are a lot of catalysts for Apple in the future and for that reason we are very positive on it.

Netflix ( NFLX) has risen 82% this year. How high can the stock go?

Jacob: Netflix has had a very good year, but we still think the fundamentals are strong and the share price still looks attractive to us. The value proposition has improved with more streaming, more devices. And, competitively, with Blockbuster ( BBI) shrinking, they have been able to gain a lot of share. So it's really still a good proposition.

Two chip stocks you like are Cavium Networks (CAVM) and NetLogic Microsystems (NETL).

Jacob: These two are providing semiconductor chips and processors for network equipment for wireless carriers. Right now there are real choke points with the wireless carriers dealing with an explosion in data traffic. And both provide processors at very high speeds at costs that are attractive, and carriers are having to spend to increase their capacity.

-- Reported by Gregg Greenberg in New York.

Before joining TheStreet.com, Gregg Greenberg was a writer and segment producer for CNBC's Closing Bell. He previously worked at FleetBoston and Lehman Brothers in their Private Client Services divisions, covering high net-worth individuals and midsize hedge funds. Greenberg attended New York University's School of Business and Economic Reporting. He also has an M.B.A. from Cornell University's Johnson School of Business, and a B.A. in history from Amherst College.

More from Mutual Funds

60 Seconds: What's the Difference Between an ETF and a Mutual Fund?

60 Seconds: What's the Difference Between an ETF and a Mutual Fund?

Mutual Funds on Track for Record Year

Mutual Funds on Track for Record Year

Bitcoin Today: Prices Come Off Highs as Rally to $10,000 Pauses

Bitcoin Today: Prices Come Off Highs as Rally to $10,000 Pauses

Video: How to Select Mutual Funds in Your 401(k)

Video: How to Select Mutual Funds in Your 401(k)

Tax Tip: Uncle Sam Will Be Looking for Your Cryptocurrency Trades

Tax Tip: Uncle Sam Will Be Looking for Your Cryptocurrency Trades