Fund Will Use Message Boards
December 20, 1999
A new mutual fund plans to use Internet message boards to obtain information from shareholders on the companies in which it invests, according to an SEC filing.
The fund, the Allied Owners Action Fund of New York, will be advised by Privateer Asset Management of New York, according to the filing.
The fund's strategy will be to purchase relatively large stakes in small and medium-sized companies and hold them long term, the filing said. It intends to acquire up to five percent of the stock of each company in its portfolio.
Once the fund has obtained the desired stake in a stock, the stock holding will be announced on a website, and shareholders will be encouraged to voice their opinions about the company, the filing said.
The shareholder debate will be conducted on message boards at a website affiliated to the fund, eRaider (www.eRaider.com), the filing said. On the site will be a "No Market Manipulation" warning to discourage individuals from posting false information to manipulate stocks, the filing said.