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Wednesday, November 17, 1999|
Potomac Bets on the Dow's New Sex Appeal
Potomac Funds filed to launch a Potomac Internet Plus and Potomac Internet Short Fund in September. Now it will add to those new funds with two more launching on December 1, a Dow 125 fund and a Small Cap Fund, .
Of the four new funds, Daniel O'Neill, managing director of Potomac Funds said, "There is a lot of interest in the Internet making the new Internet funds a natural addition." O'Neill is a recent addition to Potomac, after trying his hand at hedge fund management in Russia.
O'Neill feels that Potomac gives investors a way to avoid active managers and benefit from the double or even triple digit profits that an enhanced index can offer, although obviously negative returns on an enhanced index can drive the funds to the bottom of any returns list.
"Everyone talks about the Dow but there are not many products tracking it," he added. "Since it has made the additions of Microsoft, Intel, Home Depot, and SBC Communications, it has more sex appeal -- it's a fortunate time for us to launch the Dow 125 Fund."
All Potomac funds are no-load and available through most major supermarkets.
In regards to marketing, O'Neill said, "We are not really interested in marketing the short term funds. We believe in the long term market."
The advisor class of shares of the Internet funds will have a .75% management fee. The broker class will have the same .75% management fee and an 1% 12-1b fee. The expense ratio is 2.50%. The rest will have expense ratios capped at 1.5%.
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