| Fund Democracy |
|
Purpose and Services
This page was last updated on January 31, 2001. Articles by Fund Democracy: Archives From Worst to First: Jacob Internet Moves to Cutting Edge of Disclosure, TheStreet.com (Jan. 26, 2001). View the full text of this article. (See related article,It's Hard to Hide a 79% Loss, but Jacob Internet Is Trying, TheStreet.com (Jan. 16, 2001) (article abstract)) Abstract: The new year is a time for turning over a
new leaf, and the After a 79% drop in 2000, the fund has returned a positive 14.2% year to date, placing it in the top fifth of Morningstar's technology category. Ryan Jacob, the fund's manager, is also setting new standards for mutual fund disclosure. Jacob voluntarily amended his prospectus to prominently display Jacob Internet's -79% performance in 2000 (the only Internet fund to do so); incorporated strong cautionary language in the prospectus's discussion of risk factors; and pulled the brochure off the fund's web site for revisions. Jacob also agreed to recommend that the board hire a new independent director so that it would not have to rely on Jacob's Uncle Len to meet minimum independence requirements for the board. Other Internet funds should do the same, as SEC rules result in their prospectuses painting an often distorted picture of the funds' recent performance. Further, a number of funds need to update their web site ads, as they omit their abysmal 4th quarter returns in 2000, in violation of SEC rules. |