SHORT INTERESTS: TIPS, TRENDS, OBSERVATIONS

FUND TIMER A SHORT TIMER?

Is one of the best-known market timers getting out of the timing business?

C. Martin Unterreiner says he expects this year to see more new mutual funds that are managed with an eye to the day-to-day fluctuations of the stock market. “We’re looking more for internally managed funds that we don’t have to move often,” says the principal of Chesterfield, Mo.-based Proactive Money Management, which has about $120 million under management.

Last year’s repeal of the rule, which threatened mutual funds with the loss of their tax-exempt status if more than 30% of their returns came from investments held less than 90 days, allows fund managers to adopt more aggressive hedging strategies.

One of Mr. Unterreiner’s favorites: Caldwell & Orkin’s Market Opportunities Fund.

Run, sure, but hide. . ..

How would you like to be an adviser who recently left American Express Financial Advisors for Securities America Inc., only to discover Amex was buying the Omaha, Neb.-based independent brokerage?

Well, we’ve talked to one. And though he shall remain nameless for obvious reasons, he’s keeping a stiff upper lip.

“It was definitely a surprise,” he says with some chagrin. “But I’m really pretty open-minded as to what’s going on. I’m comfortable with what (Securities America) is telling me. I think I’m going to really wait and see what happens.”

Guess he was one of the advisers Minneapolis-based Amex didn’t sue for violating the non-compete agreement.

Heck of an anniversary

In its first year, the Monetta Small-Cap Equity Fund has made quite a splash, earning 52.2% through Feb. 5, which would rank it among the top small-cap funds – and the top funds overall – for the period. The tiny $2.9 million no-load fund aims to identify fast-growing companies before they’re discovered by big institutional investors, according to Robert S. Bacarella, president of Wheaton, Ill.-based Monetta Financial Services Inc.

Health care stocks fueled much of the growth –
among them: Aavid Thermal Technologies and Jones Medical Industries Inc. – but it also owns Trammell Crow Residential Co., a real estate outfit.

Monetta, with seven funds, wants shareholders to feel like one of the family. Its press release asks people wanting more information to “please contact Sally” at the company’s 800 number.

Cyber proxy fights next

In a boon to shareholder activism, not to mention a huge savings for companies, a Roseland, N.J., firm has introduced proxy voting over the Internet. Automatic Data Processing’s Investor Communications Services – which processes shareholder information for more than 800 banks and brokers – rolled out its Internet service this month. Already, says a spokesman, “we are getting early votes and in large blocks.”

Stockholders are notified by mail and given the option of casting their proxies by logging on to www.proxyvote.com. ADP says the Internet service could save companies as much as $25 million if it can eliminate as little as 5% of the mailings it now sends to shareholders.

Steve Daniels, Anna Robaton,

and Marlene Givant Star