Lobo's Investment

This week, I am reading the Annual Reports from various fund houses. I found something interesting. The fund size of the New Energy fund increased from 16M in '03 to 2633M in '06, i.e. 165 times. At the very beginning, I bought this fund just because they're holding some very interesting companies such as American Superconductor. As the fund size increased so much, I am afraid that they can hardly find more companies on exciting new energy technology, the theme would be forced towards companies on renewable enegy. Thus, I expect lower return.

Also, good sign shows in financials sector, I should incease the exposure there. As the emerging market funds I hold generally have below average breakdown in financials, in order to have an overall 30% of financials in my portfoiloI better consider adding 5-10 percent for a financial sector fund.