New Fund Sees Industry Resurgence

If Ernest Mysogland has things figured out right, you’ll be hearing a lot more about the comeback of industrial America.

Mysogland maintains that old-line U.S. smokestack companies like the Big Three auto manufacturers have embarked on more than just a temporary upswing in their long-flagging fortunes.

He has set up the portfolio of the new mutual fund he manages to try to benefit from their resurgence.

“Chicken Little was wrong. The sky is not falling,” declares the 51-year-old Mysogland, echoing the sentiments of the bovine statuette labeled “Ernie the Bull” that sits beside his desk.

Among the holdings of the NWNL Northstar Income and Growth Fund, which began operations in November and now has more than $50 million in assets, are the stocks of the Big Three car manufacturers. In a portfolio of 48% stocks, 28% bonds, 20% convertible securities and 4% cash equivalents, General Motors represent the single biggest position.

“This epitomizes everything that is going well in the United States,” Mysogland says. “Instead of not being able to compete, we are clobbering Japan. We export more of our gross domestic product than Japan.”