Dec. 26, 2002 — Van Wagoner Funds plans to introduce a new mid-cap growth portfolio focusing on industry leaders that are known as innovators in their field, according to a recent SEC filing.
To be co-managed by Garrett Van Wagoner and Raiford Garrabrant, Van Wagoner Growth Opportunities Fund will invest in stocks with market capitalizations in the S&P MidCap 400 index. The new fund may also use hedges on stocks or indexes.
Garrett Van Wagoner also oversees Van Wagoner Emerging Growth Fund (VWEGX), Van Wagoner Post-Venture Fund (VWPVX), and Van Wagoner Technology Fund (VWTKX). Van Wagoner is president and sole shareholder of Van Wagoner Capital Management, a San Francisco-based asset management firm.
Garrabrant manages Van Wagoner Mid-Cap Growth Fund (VWMDX) and has been with Van Wagoner Capital Management since 1996.
A strong performer during the 1990s, Van Wagoner Capital Management has incurred sharp losses in recent years as its aggressive growth funds have been hit hard in the bear market. The firm’s total net assets have fallen to $197.1 million at the end of last September, from $2.7 billion at the end of 1999.
Van Wagoner Emerging Growth Fund lost 56.4% this year through November, versus a 24.0% decline for its small-cap growth peers. For the three years through November, the fund fell an annualized 45.7%, compared with an 11.4% drop for its peers. In 1999, the fund rose 291.2%, versus a 60.2% gain for its peers.
Van Wagoner Growth Opportunities will carry total annual expenses of 1.95%, including a 12b-1 fee of 0.25%. The fund will require a minimum initial investment of $2,500 for regular accounts.