SHORT INTERESTS: TIPS, TRENDS, OBSERVATIONS

A sporting chance

Sports fans who want to be more than just spectators can now play the game by investing in American Sports Equity Trust, a new unit investment trust from Delaware Investments in Philadelphia. Investing exclusively in sports-related businesses, the 48-month portfolio offers 30 stocks including AMF Bowling Inc., Boston Celtics Limited Partnership, Callaway Golf Co., Nike Inc. and Ticketmaster Group Inc. Shares bought during the offering period (May 5 through Dec. 31) and held till the trust expires on April 30, 2002, qualify for the 20% long-term capital gains rate. The minimum is $1000; $250 for qualified plans.

Tie one on with Taiwan

The only Asian market worth a hill of bean curd these days is Taiwan. And that comes from someone who you’d expect to be a booster: James Squire, 33, portfolio manager of the $130 million Asia Pacific Fund Inc. run by Baring Asset Management. The fund stands out in what he calls a “consenting adult’s” region. It was down 20.5% in the year to date through June 30 and 53.1% in the 12 months through that date. By contrast, his bogey (a mouthful known as the MSCI Combined Far East Free ex-Japan in Dollars) was down 26.8% and an eye-popping 60.2%.

Next to Hong Kong, the largest and most liquid market Mr. Squire can invest in, Taiwan is second in the portfolio, at 14% of assets. His next biggest weighting is in cash, at 13%, reflecting his bearish view. He says Asia’s recession-plagued economies are in three configurations: Taiwan’s is V shaped, and therefore likely to recover first. It has no “obvious structural problems” and “Taiwan makes things.” What’s more, he expects corporate earnings will be up 5% to 10% this year. U-shaped economies like Japan’s must undergo more protracted structural changes. Malaysia and Indonesia fall into the “L” category, as in “lost cause.”

Asian markets might bounce along the bottom for some time, but “what comes out of the furnace will be damn good,” he says. Among his holdings: cheap cellular stocks like Smart Tone and China Telecom in Hong Kong and Advance Information Services in Thailand.

We’re No. 3!

Whomever put together the registration form for Salomon Smith Barney’s stock-picking forum held July 7 obviously goofed, hailing the event as the: “Third Best Ideas conference.”

Closing thought

Boston adviser Eric Kobren isn’t afraid to name names. In July’s issue of his FundsNet newsletter, he tells readers not to “buy or add money to a fund just because it’s closing.” He says such funds offer little outperformance relative to peers.

After several reporters called to ask him which funds should shutter, Mr. Kobren, who is president of Kobren Insight Group, published a list including such well-known funds as Janus Worldwide, Kaufmann, Vanguard Windsor II and Fidelity Equity-Income I and II.

“I want to make it perfectly clear that I like some of these funds.We just think shareholders would be better served if they were closed.”