By investing in oil drillers, zinc producers and gold miners, the
Approximately $197.5 million, or nearly 50% of the New York-based fund's total assets, is invested in energy, while 26%, or $99 million, is invested in metals. The remaining 24% is in real estate, paper and agriculture.
"We're big believers in diversification," said Shawn Reynolds one of the fund's seven managers.
In the past year, the fund's assets soared by 56%. Only the $1.5 billion
While the Van Eck fund's increases are indeed impressive, double-digit negative returns aren't uncommon to the sector, either, according to Sonya Morris, a fund analyst at the research firm
For instance, in 2005 Van Eck rose 49%, but in 1998 it fell 32%.
In September, the fund minimized its investments in energy, and placed more money into the shares of industrial metal companies.
"On a short-term basis, energy doesn't have a whole lot of upside potential, while at the same time, metals are looking good," said Samuel Halpert, another one of the seven managers of the fund.