An edited excerpt from the June 20, 2003, edition of The Wall Street Journal
Technology shares have been rising in staccato leaps during the past three months. Since the run-up started March 11, the Nasdaq Composite Index has gained 32%, and the average tech-fund stock mutual fund is up 36% through Wednesday.
Internet company stocks and Internet-focused mutual funds have scored the sharpest gains. Shares of Jacob Internet Fund (JAMFX), for example, have soared 49% during the past 90 days through Wednesday, thanks in part to holdings like Chinese Internet portal Sohu.com Inc (SOHU), whose price has more than tripled during that span.
Sounds a bit like life before the tech bubble burst in March 2000, doesn’t it? That, some mutual fund watchers say, is just the problem.
Indeed, even with the Nasdaq closing at 1,648.64, it remains 67% off its 2000 peak. Despite the recent gains, Ryan Jacob’s Internet fund averaged a 41% loss for the three years ended Wednesday.