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Risky Amerindo Technology Plunges

Surprise! This fund's Internet holdings have gotten pummeled.

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No one should have been surprised by Amerindo Technology's (ATCHX) breathtaking drop.

This fund's risky strategy has been a huge negative in recent months. The portfolio's many pure-play Internet stocks got hammered in late 2000 and early 2001. During the fourth quarter of 2000, when Net issues such as (PCLN) and CMGI (CMGI) took particularly big dives, the fund lost 54% of its value. By contrast, the average specialty-technology fund shed "just" 36% of its NAV. For the year to date through February 27, 2001, the fund has lost another 26%. The carnage here would have been even worse had management not shifted some assets into biotech issues, which held up better than Net stocks.

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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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