Conference nyoss1::market_investing

Kaufmann's fees are mostly releated to the restructuring charges they took in 
1987, when the fund was reorganized, and new management took over.  Apparently
it was mismanaged for a couple of years, and it cost a lot to reorganize.  If I
remember from the prosectus those fees are coming down when the last of the
restructuing charges happen this year.  I also remember reading that they haven't
paid many capital gains because they are still carrying some capital losses from
the restructuring...this I suspect will also stop.

michael

    I have also recently looked into this fund and just like you, I was
    also "shocked" to find out its high expense ratio, the 0.2% back-end
    load (let's be honest, it IS a LOAD) AND a 1% 12b-1 fee. I can live
    with the 0.2% load. But, the expense and the 12b-1 combines to an total
    of about 5%. And this money is charged ANNUALLY - that is a capital
    "OUCH". I know this fund has been doing well lately. But, compare it to
    the other top-grade (real) no-load mutual funds I own, this fund has to
    out perform the other funds by at least 3.5-4% EVERY year just to be 
    even. I guess this cup of tea is NOT for me. 
    
    And FWIW, I haven't seen this fund being recommended by many of the 
    publications I read.
    
    Mike
    

I too have been looking at Kauffman and am bothered by their high fees.
The fund manager was on CNBC Mututal Fund Review show last week (each night 
at 7:00 PM) and when questioned about his high fees he stated that they have 
been (and are continuing) to come down a little each year and that the funds 
outstanding performance makes it less an issue.  It was also hinted that 
the fund may close to new investors down the road if the inflow of new 
investments doesnt slow down.  I may put a little money in because it is a very
aggressive fund with great performance but the high fees will limit how much I 
invest.

gary    

PS... those of you who get CNBC on their cable should check out the investing 
shows that are on each night from 6-8PM.

Morningstar rates Kaufmann as a "5 Star" fund (its highest rating) and, while I 
don't recall the specific comments of the analyst, he/she was a BIG admirer of 
this fund.  I recently sold my shares of this fund, largely because it was 
stagnant (never went up, never went down; just sat there at ~2.35 for about 9 
months).  It has since rebounded and as of yesterday's close was at 2.88 (can I 
time 'em or WHAT!?)  

I was surprised that Berger 100 was rated somewhat lower (4 Stars?) and the 
analyst mentioned that (paraphrasing:) 'Berger 100 is a good fund if you don't 
mind paying high fees and can stand the bumpy ride'.  "WHAT?!" I thought quietly
to myself (after all, I was in the library) "How can you complain about Berger's
relatively tame fees and comparably stable growth moment and praise the 
outrageous fees and high volatility of Kaufmann the next???"  IMHO, there are 
better aggressive growth funds to choose from than Kaufmann (20th Century Ultra,
for example)

Tom

    The main difference between the ratings in Morningstar is because of
    the category the funds are in.  Kaufmann is considered an aggressive
    growth fund and Berger just growth.  They seem to have similar risk
    ratings, but Kaufmann in the aggressive growth category is given more
    room to be volatile.  Another thing to consider when looking at
    Kaufmann's fees.  Along with the restructuring charges, they deal in
    options, and are leveraged...this cost more, in hopes of higher
    returns.  Another thing to consider is the size of the companies that
    Kaufmann invest in (usually very small), some say that small company
    stocks are the place to be in the 90's.
    
    michael

    Not to change the subject but if you are interested in the Kaufmann
    Fund you may want to look into the Fasciano Fund (you'll have to look
    for this one, it just got listed in Morningstar, has only 175
    investors, and isn't listed in newspapers).  The phone number is
    1-800-848-6050.  It is a small fund (which appeals to me in a volatile
    market).  It has a 1.7% expense ratio.  It takes $1000 to get in or $0
    with automatic investment plan.  It gets 4 stars from Morningstar, and
    is listed in the core 500 in 5 star investor (a Morningstar monthly
    newsletter).  It invests in small companies with a blend of value and
    growth.  The fund manager is very good at protecting the downside, and
    does a good job on the up.  I just sent for the prospectus, and have
    decided to start my daughter's custodial account there.
    
    /mtb

    The February issue of Money Magazine touts this as the #1 performing
    mutual fund for the past five years. The fund was mentioned in THREE
    separate occassions throughout the issue, and for the first time I
    noticed a fairly larged sized ad in the back of the magazine. This,
    (with the low price), obviously prompted me to call the "1-800" number
    to order a prospectus. Surprisingly enough, I had to wait a good 5
    minutes (and listen to some really nasty tunes from the 70's) when an
    "operator" finally came on to take my name and address and PHONE
    NUMBER (they wouldn't send anything out without it). I suddenly got the
    feeling this was a Mom and Pop business.
    
    Granted, Money Magazine had the same publicity blitz for Janus last
    year, I just have to wonder how many readers are going to suddenly
    pounce on Kaufmann over the next few days to make a fast buck. It
    happened to Diana Corp after the Wall Street Journal wrote it up after
    New Years....