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Thread: Investing in sin (the Vice Fund)

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    Senior Member stitch132's Avatar
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    Default Investing in sin (the Vice Fund)

    I was interested to see an April 24 press release stating that the Vice Fund was in the top 2% of multi-cap mutual funds for the past 3 year period. The Vice Fund's 1-year trailing return is 19%.

    The Vice Fund looks "for companies that derive a significant portion of their revenues from products often considered socially irresponsible." Lots of Vegas-related investments. It even has a small holding in Rick's.

    It's appealing to me because these "socially irresponsible" stocks may well be underpriced because people want to avoid them for reasons unrelated to their business strength.

    A good way to diversify a portfolio?

    Yahoo's summary page: Vice Fund
    Let there be peace on earth and let it begin with me.

    I learned a long time ago there's no sense getting all riled up every time a bunch of idiots give you a hard time. In the end, the universe tends to unfold as it should. Plus I have a really large penis. That keeps me happy.
    (Tarik, Harold & Kumar Go to White Castle)

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    Default Re: Investing in sin (the Vice Fund)

    I agree wholeheartedly with your basic assessment that there are many very profitable companies out there that some investors tend to shy away from out of 'political correctness'. However, the 'best' investment opportunities along these lines are actually to be found in places like South Africa.

    The Vice Fund's collection of mostly large cap American companies involved tobacco, alcohol, gambling etc. is certainly a ways off the beaten path, but it's not really all that diversified since most of the companies are all dependent on the future fate of the US economy and the US dollar.

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    Default Re: Investing in sin (the Vice Fund)

    Is Ben & Jerry's on that list?

    But seriously, the betting business is pretty hot right now. Seems people like to bet even more when the economy gets bad.

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    Banned Melonie's Avatar
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    Default Re: Investing in sin (the Vice Fund)

    traditionally, when the US economy has turned down, people smoke more, people drink more, people gamble more, such that the Vice Fund stocks tend to do quite well. Even so, it's not an across-the-board phenomenon i.e. Maker's Mark sales may drop while Budweiser sales may increase.

    Again, I'm not a big believer in mutual funds of any sort, because the fund managers always pick losers to go along with the winners. If I were sold on the concept that Vice stocks were going to rise (which I'm not quite ready to do) I'd probably just buy shares in the two or three companies with the best chance of profiting. And in regard to buying shares in any strip club corporation, fugeddabout it - too many variables (like the SCORES owners being accused of embezzling money).

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    Default Re: Investing in sin (the Vice Fund)

    Here's some fresh concerns for you Stitch and anybody else checking into VICEX http://www.marketwatch.com/News/Stor...rd=the%20noose You may want to hold off on buying into this fund for a minute
    Last edited by Optimist; 05-09-2006 at 01:52 PM.

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    Senior Member stitch132's Avatar
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    Default Re: Investing in sin (the Vice Fund)

    Well, I already have VICEX. I don't see anything too unusual about the recent concerns -- I don't trust any of the mutual fund managers anyway.
    Let there be peace on earth and let it begin with me.

    I learned a long time ago there's no sense getting all riled up every time a bunch of idiots give you a hard time. In the end, the universe tends to unfold as it should. Plus I have a really large penis. That keeps me happy.
    (Tarik, Harold & Kumar Go to White Castle)

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    Default Re: Investing in sin (the Vice Fund)

    This has been a running joke for me and some investment pals for years ... that we'd start a fund invested in gun running, gambling, porn, smuggling and drugs and the fund would earn 300% + pa and never get an investor, everyone thinking it was a fraud.
    I'm not too sure that the fund above would provide too much diversification for a portfolio, but one would imagine that the returns should be above average. In theory anyway.
    Hey, if it works, good luck to you.

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    Senior Member stitch132's Avatar
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    Default Re: Investing in sin (the Vice Fund)

    The Vice Fund has some competition -- the new Gaming and Casino Fund. Started trading in April, but I missed it till today.

    See http://finance.yahoo.com/q?s=gacfx
    Let there be peace on earth and let it begin with me.

    I learned a long time ago there's no sense getting all riled up every time a bunch of idiots give you a hard time. In the end, the universe tends to unfold as it should. Plus I have a really large penis. That keeps me happy.
    (Tarik, Harold & Kumar Go to White Castle)

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