Internet Fund Closing to New Investors

The Internet Fund, the top-performing U.S. mutual fund this year, is closing its virtual doors to new investors. It expects to reopen March 30 after a shareholder vote.

The fund, which zoomed 198% last year and has returned 75% in 1999, could reopen if investors vote to increase the number of shares it can sell, said James Doyle, a lawyer for the Internet Fund, based in North Babylon, N.Y.

In New York state, a fund must specify how many shares it wants to sell to the public. In its original plan, managers said they would limit the fund to 10 million shares. “We sold all of the shares out,” Doyle said.

A shareholder vote is set for March 29 to raise the number of shares the fund can sell to 50 million.

The fund’s performance has attracted tremendous interest from investors as assets ballooned to $265 million this week from $12 million as recently as Nov. 30.