Internet Man - internet mutual fund manager Ryan Jacob

Kiplinger's Personal Finance Magazine, May, 2000 by Robert Frick

Risky business

INVESTING IN companies that burn up money so fast makes for a wild ride, as the market alternately rewards and punishes them. While at the helm of Kinetics Internet fund, Jacob sat through a 40% drop in just a couple of months. And more seesaw gyrations in Internet stocks will keep investors off-balance in the years to come. Says Alexander: "There will be a lot of carnage and blood in the streets. That's the nature of this beast."

While he has faith in the Internet phenomenon long term, Jacob also believes that among the Internet stocks now on the market there are so many dogs that selling certain stocks short--that is, investing to make money if the stocks go down--is another way to play the sector. He hopes to start a hedge fund soon that will offer great returns with less volatility.

But dampening volatility by diluting his portfolio with companies only somewhat Internet-related is not in the cards. "For better or worse," says Jacob, "in our fund you get the Internet and nothing but the Internet."

--Reporter: CHRISTINE PULFREY

Kiplinger.com

Got a question for Jacob? On April 17 Ryan Jacob will answer the questions about his fund and internet investing. Check our site that day for details.