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Bloodied But Unbowed, Ryan Jacob Perseveres

Sticking with pure-play Net firms, Jacob doesn't plan to close fund.


Maybe it's his conviction. Maybe it's because he backed himself into a corner with bold, optimistic comments about the Internet's rosy prospects. But whatever the reason, Ryan Jacob is staying the course.

Given that Jacob Internet Fund (JAMFX) is on its way toward posting dismal returns for a second-consecutive calendar year, one might think its manager would be tempted to change approaches, or even throw in the towel. Not Jacob. Although he has tilted the fund away from the consumer-Internet firms that once dominated the portfolio, he is still focusing on pure-play Internet companies such as Net-banking-services provider Digital Insight (DGIN). And while the fund's assets have slipped from $300 million to their present $30 million, Jacob said he wasn't considering closing the fund. "Unless we have significant redemptions," Jacob said, "it's not a terminal situation." The fund's assets would have to fall to less than $10 million before he would consider liquidating it, Jacob said.

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Scott Cooley does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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