Jacob Internet Fund Finds Strength In Value

Ryan Jacob, a star of the Internet boom and victim of its bust, is back on top. Thanks to bear-market triage, a strategic overhaul and careful stock picking, his $69 million Jacob Internet Fund, born on the eve of the Internet meltdown, is now the No. 1 technology fund on a three-year annualized basis with a 25.4% return, according to research firm Morningstar.

The portfolio manager says several investment themes were key to his outperformance last year: Chinese Internet companies, video games and digital music. Interestingly, Jacob’s continued adherence to value principles is keeping him, for the most part, out of two favorite Internet-investing themes today: online advertising and Web search.

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