We know of only one. It’s the Ladenburg Thalmann Gaming & Casino Fund (ticker symbol: GACFX). It’s a no-load multi-cap mutual fund that specializes in casinos and gaming manufacturers, plus companies in the parimutuel, lottery, and electronic/video-game industries.
The fund holds shares in 40 different companies. Its top 10 holdings, which account for 64% of the fund’s funds, include Penn National, MGM Mirage, Las Vegas Sands, IGT, Pinnacle, Wynn, Bally Technologies, WMS Industries, Gamestop Corp., and Melco PBL Entertainment (the Macau joint-venture between James Packer and Stanley Ho). Asset allocation as of 9/30/07: 85% U.S. equities, 10.1% foreign securities, and 4.9% cash.
Ladenburg Thalmann is a brokerage and investment-banking firm that was established in 1876. The Gaming & Casino Fund was founded in March 2006 and it’s managed by Dan Ahrens, author of Investing in Vice -- The Recession-Proof Portfolio of Booze, Bets, Bombs, and Butts. He also founded Mutual.com’s politically incorrect Vice Fund (VICEX).
The gaming fund gained 8.1% for the 12-month period ending March 30, 2007, its first full year of trading. As of last Sept. 30, it had earned 11.57%. The return for the first year ranked in the top 21% of 966 mid-cap growth funds tracked by Morningstar.
As of today (1/09/08), the net asset value per share is $10.03. The 12-month low-high as of 11/30/2007 was $9.90-$12.33. The NAV has gone down from $12.28 on 11/30 to $10.03 today.
The minimum initial investment is $5,000, $3,000 for retirement accounts; the minimum additional investment is $250.
For more information or to receive a prospectus, call 877/843-4223 or go to gamingandcasinofund.com.
And If anyone knows of any other gambling-based mutual funds, please let us know.
