Subscribe to Entrepreneur for $5

Riding It Out

This telecom fund has major staying power.

This story appears in the April 2004 issue of Entrepreneur. Subscribe »

The first thing to understand about sector-fund investing isthat it can be a roller coaster ride: Sometimes, total returns areway up; other times, they're in the tank. Here's onethat's shown well in the short and long term: The T. Rowe PriceMedia & Telecommunications Fund (PRMTX) has been around since1993 and, like all telecom-sector funds, has seen its share ofmarket volatility. Unlike many, however, it has weathered thestorm; and since inception, the fund's average annual totalreturn-through the end of 2003-was 14.16 percent. And at the end of2003, it was up 55.99 percent, while the average telecommunicationsfund was ahead 39 percent, says Lipper.

Robert Gensler has been the fund's portfolio manager since2000. One change he's made since taking over is to add moreglobal stocks. "I keep about 40 percent [invested] outside theU.S.," he says.

Continue reading this article - and everything on Entrepreneur!

Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5.

Entrepreneur Editors' Picks