| Fund Democracy |
|
Purpose and Services
This page was last updated on January 31, 2001. Articles by Fund Democracy: Archives It's Hard to Hide a 79% Loss, but Jacob Internet Is Trying, TheStreet.com (Jan. 16, 2001). (View the full text of this article.) (See related article, From Worst to First: Jacob Internet Moves to Cutting Edge of Disclosure, TheStreet.com (Jan. 26, 2001) (article abstract)) Abstract: Jacob Internet fund's 79.1% decline in 2000 is one of the worst one-year performances in mutual fund history. But you would never know it from reading the fund's prospectus. Ryan Jacob, the fund's manager, seems to be using every legal trick in the book to keep his fund's recent travails out of its prospectus and marketing brochure -- two important sources of information for prospective investors. The fact that Jacob can avoid mentioning that his portfolio lost nearly four-fifths of its value in one year shows how toothless reporting requirements can be. The fund's online prospectus is stale and fails to include a cautionary amendment made over 8 months ago. The fund's new prospectus, when the fund gets around to providing it to investors, will still omit the fund's abysmal performance in 2000. Under current disclosure rules, the fund will not have to include its Y2k performance until Jan. 1, 2002. |