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New Value Fund Planned

The Electric City Funds of Schenectady, N.Y. is planning a new mutual fund that will invest primarily in a small group of stocks that it will hold long-term, according to an SEC filing.

The Electric City Value Fund will buy stock in companies that the fund expects will show a significant increase in value over three years or more, the filing said. It will invest in companies without restrictions on market capitalization, and will hold at least 80 percent of its assets in stocks of no more that 40 companies, the filing said.

It will look for companies that are in good financial condition but are temporarily out of favor with investors, and are expected to experience a "triggering event" that may cause an increase in the stock's value, the filing said.

The fund's investment adviser will be Mohawk Asset Management of Schenectady, N.Y. The portfolio manager will be James W. Denney, Mohawk's president, who will be managing his first mutual fund.