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Fund Times

Fund Times: Openings, Closings, & Manager Changes

Zero Gravity Internet, PBHG, iShares, Wells Fargo, Nations, and others.

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The technology-stock bear gobbled another fledgling Internet fund last week as Zero Gravity Internet (M)$-cdgb succumbed to the pull of both market and marketing forces. Like all things Internet over the last year or so, the fund's performance has been dismal, but Zero Gravity's biggest problem was selling itself. The fund never attracted enough assets to support its operations. In other news, there still seems to be a demand for former growth managers in hedge-fund land, and--big surprise--fund companies continue to roll out more new funds in last year's best sectors: health care and value. 

Closings
Less than two months before its first birthday, Zero Gravity Internet  (M)$-cbgb has met its quietus. On Monday Zero Gravity Capital Management decided it was time to shutter the Internet fund. The offering had lost more than 40% of its value over its short life and never managed to attract more than $6 million in assets. The fund, which currently has less than $3 million in assets, needed between $30 million and $50 million to be viable, said James Hartmann, president and chief executive of Zero Gravity Capital Management. The firm had tried to acquire other Internet funds to reach that goal, but none of the deals came to fruition, according to Hartmann. Zero Gravity Capital Management will continue to invest in public and private companies through a hedge fund and other accounts, Hartmann said. As for the people in the mutual fund's 700 accounts, if they're still interested in the Internet, they will have to look for another mutual fund.

Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.