Van Wagoner Rises Quickly

Sat., June 1, 1996

From Wire Services

Money manager Garrett R. Van Wagoner is making mutual fund history.

Never before has a manager attracted $1 billion so quickly to a new fund group, analysts said.

Van Wagoner, former manager of the top-ranked Govett Smaller Companies Fund, launched three proprietary mutual funds on Jan. 1. The funds today have a combined $1.04 billion in assets, and even more important they have posted returns ranging from 43 percent to 60.1 percent so far this year.

“Van Wagoner is the fastest pure start-up that we know of,” said Neil Bathon, president of Financial Research Corp. in Chicago.

“I can’t think of anyone who’s attracted so much assets to a new mutual fund complex so quickly,” said Avi Nachmany, a veteran analyst at Strategic Insight, a New York-based research firm.

To be sure, Van Wagoner’s timing in launching a new fund group couldn’t have been better. Money has been pouring into U.S stock funds all year at record levels.

About $99.13 billion was invested in equity funds in the first four months of 1996, the Investment Company Institute, the industry’s trade association, reports. That’s triple the $31.96 billion invested in the same period last year.

“Investors rush to managers who are hot and then hoist their own shingle,” said Michael Lipper, president of Lipper Analytical Services Inc., a research group in New York. “There are a number of examples.”

Under Van Wagoner’s guidance, the Govett Smaller Companies Fund was the top-performing stock fund in the country in the three-year period ended Dec. 31, rising 51.1 percent a year, according to Lipper Analytical Services Inc.

Van Wagoner’s new funds are getting off to a fast start. The Van Wagoner Emerging Growth Fund is ranked No. 5 of 275 small company funds this year by Lipper Analytical. It’s up 60.1 percent in value.

Van Wagoner’s Micro-Cap Fund places No. 8 of 376 small company funds, up 43.5 percent. The Van Wagoner Mid-Cap Fund ranks No. 1 of 137 “mid cap” funds followed by lipper Analytical this year. It’s up 43 percent on a total-return basis.

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are tax deductible.

Meet Our Journalists

Jesse Tinsley

Meet Jesse Tinsley. As a certified drone pilot, this veteran Spokesman-Review photographer often can be seen capturing beautiful aerial photographs of our region. Sometimes though, the job requires getting down with the dogs.
Jim Meehan

Jim Meehan is no stranger to Zag Nation. As the lead writer covering the Gonzaga men’s basketball team, he tells the stories behind the game and gets fans a bit closer to their favorite players.
Molly Quinn

There is no artist in Spokane like Molly Quinn. Her whimsical style is instantly recognizable to readers of The Spokesman-Review. She has painted gorgeous illustrations that instantly elevate the journalism accompanying it. She brings to life the stories that defy photography. She makes our pages better.
Rob Curley

Spokesman-Review editor Rob Curley loves to talk with people and learn about their lives, whether it's a best-selling author or a stranger he meets downtown on his walk to lunch. It's that inquisitive nature combined with a playful sense of storytelling that helps make our newspaper different than most.