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Strange Days Indeed: Tech Fund Manager Betting on Sluggish Growth

Posted May 01, 2008 05:06pm EDT by Aaron Task in Investing, Internet, Recession
Related: ELNK, SOHU, SINA, TTWO, YHOO, JAMFX

Thursday was a tough day for the skeptics and this year has been tough so far for the Jacob Internet Fund. The fund was down 9.2% year-to-date heading into today, but still sports a healthy 22.2% return over the past five years.

In the accompanying video, Darren Chervitz, co-manager of the four-star Morningstar rated fund, explains how it's tough to be betting on sluggish growth when your mandate is to invest in technology stocks.

The fund has big positions in takeover targets Yahoo and Take-Two, as detailed in prior videos. Beyond M&A candidates, Chervitz says the strategy is to find companies in industries that are recession resistant, such as dial-up Internet provider Earthlink -- or those exposed to markets with huge secular growth, such as Chinese Internet plays Sohu.com and Sina.

Here, Chervitz explains the challenges of being a growth stock manager when you think growth will be sluggish, even in China, and why videogames may be a new consumer staple.

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4 Comments

Chad
Chad - Thursday May 01, 2008 06:49PM EDT

milk, eggs, videogames. classic. btw, what the heck am i still doing on the computer? it's time for my commute -- to liberty city.

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john
john - Friday May 02, 2008 12:45AM EDT

He is bullshit! He is going to take your money while you buy these stocks.

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alex kitau
alex kitau - Friday May 02, 2008 05:31AM EDT

EVERYTHING IS POSSIBLE

report abuse
alex kitau
alex kitau - Friday May 02, 2008 05:33AM EDT

EVERYTHING IS POSSIBLE

report abuse
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