The Amerindo Internet Fund is now standing on a discount to NAV of 35.1% after a tough 2002 which sa...
The Amerindo Internet Fund is now standing on a discount to NAV of 35.1% after a tough 2002 which saw its portfolio fall by 45.7% in value.
The portfolio, launched at the height of the internet boom in 2000, now has assets of £58.6m.
Amerindo Fund Managers blamed the lack of pick-up in information technology spending as the main reason for the decline in NAV.
Michael Sandifer, member of the investment committee at Amerindo Fund Managers, said as a result of the lack of capital expenditure in the sector, the portfolio's assets are now largely concentrated in business to consumer stocks.
Sandifer added these companies, such as eBay, Expedia and Amazon, have now matured, are profitable and are generating free cash flow at an accelerating rate.
Some 65% of the portfolio is invested in these sorts of stocks and Sandifer said until Amerindo sees more evidence of a meaningful increase in capex, the trust will remain invested in the more conservative and less economically sensitive businesses.
Some 10% of the portfolio is invested in biotech stocks, while the remaining 25% is invested in technology, software and telecom stocks, which are sensitive to capex spend.
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