Business - Written by Naumi Haque on Thursday, February 14, 2008 16:19 - 2 Comments
Gendex Mutual Fund targets NetGen, outperforms Nasdaq
Thrasher Funds is a fund company aimed at capturing Net Gen investors with their trendy and targeted Gendex Mutual Fund. Holdings include youth-respected global brands such as Apple, Adidas, China Mobile, Coca Cola, Google, H&M, Louis Vuitton, Lulu Lemon, Time Warner, Toyota, and Volkswagon.

I say, smart move. The Fund basis its investment portfolio on what they call the “Demographic Convergence Thesis,” or more specifically:
“The investment thesis that believes that there are specific companies and industries that are taking advantage of the convergence between Generation X and Y’s newfound spending power and trend setting and the Baby Boomers’ desire to stay young forever and use their spending power to emulate the trends of the younger generations.”
According to the Microsoft Small Business Center, American Net Geners average $100 a week in disposable income, or approximately $150 billion a year. They also influence another $50 billion in family purchases a year, bumping the annual total to $200 billion. The Gendex Fund makes investing in youth brands accessible to the youth audience by pricing the minimum investment at $100. Now young people that always wanted to invest in companies like Google or Microsoft can actually afford to do it.
Now three months old, the Gendex Mutual Fund is proving that, hype aside, its investment strategy works. Since November, Gendex has consistently outperformed the Nasdaq. This has been especially true in recent weeks, indicating perhaps that Net Gen brands are also slightly more insulated against market downturns.

2 Comments
Anshuman Mishra
Why does this remind me of the Go-Go 60s, when funds had huge holdings in stocks such as “National Student Marketing Corp.”, the basic premise being that there’s a whole new generation of “savvy” young people representing a huge target demography to be marketed to.
“History does not repeat itself, but it surely rhymes.” – Mark Twain
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Coming soon in paperback! Help rename the paperback version of Macrowikinomics and win a one-hour webinar for you and your colleagues with Don Tapscott. Ends 5:00pm ET, August 31.
An alternative to the Thrasher Fund is the Monetta Young Investor Fund. Holdings include, Disney,McDonald’s,Google,Coca Cola and Apple with half the fund invested in low cost ETFs
that track the S&P 500 index. An innovative portfolio structure with a 1% capped expensed ratio.