[lbo-talk] socially irresponsible investment

Doug Henwood dhenwood at panix.com
Wed Apr 13 14:24:45 PDT 2005


Vice Fund gains on smokers, drinkers and gamblers Wed Apr 13, 2005 05:18 PM ET BOSTON, April 13 (Reuters) - Vice sells.

And with tobacco, alcohol and gambling stocks on a roll, Mutuals.com's Vice Fund (VICEX.O: Quote, Profile, Research) has jumped into the top 1 percent of more than 700 mutual funds in its classification.

Since the end of last year, the fund has attracted more than $12 million in new money, a 55 percent increase. It now has $34 million under management, and expects to hit $100 million by the end of 2005.

"We attract all types of investors," Dan Ahrens, the portfolio's manager, said in an interview. "Many are investors who don't smoke, drink or gamble, but it makes sense to them that other people do."

Performance has been steady as the Vice Fund returned 16.1 percent in the 12 months ended March 31, beating the Standard & Poor's 500 Index , which rose 4.8 percent in that same period.

The fund's performance ranks among the top 1 percent of 781 funds in its multi-cap core category, according to Lipper Inc., a unit of Reuters Group Plc, Multi-cap core funds returned an average 5.8 percent over the period, Lipper said.

The Vice Fund, opened in August 2002, has 80 percent of its assets in tobacco, alcohol, gaming and defense stocks.

"We hold up well in short downturns and do well in up markets, too. That's the whole basis of the fund," Ahrens said.

And the Vice Fund's bet on so-called sin stocks has paid off handsomely. Among its top performers is United Defense Industries (UDI.N: Quote, Profile, Research) , which makes combat vehicles, artillery and missile launchers. In the 12 months ended April 12, the company's stock shot up 121.3 percent.

Mikohn Gaming Corp.(PGIC.O: Quote, Profile, Research) , a technology company specializing in casino slot machines, also helped the fund with its stock skyrocketing 213.8 percent in the past year.

Spirits supplier Constellation Brands Inc.(STZ.N: Quote, Profile, Research) gained 79.7 percent in the past 12 months and the stock of tobacco giant Reynolds American Inc. (RAI.N: Quote, Profile, Research) rose 34.2 percent in the past year.

"Everything in tobacco has been up. There are no losers," Ahrens said. "It's very stable."



More information about the lbo-talk mailing list