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Internet Fund, Manager Split Paths

Internet Fund manager Ryan Jacob has chosen to run his own investment advisory firm rather than stick with the mutual fund wonder.

Jacob announced his departure from the $650 million-asset fund while a deal was in the works to sell the Internet Fund to Lepercq, de Neuflize & Co., New York, according to a Wall Street Journal report published Thursday. Current owner Kinetics Asset Management now says the acquisition is off due to price and other disagreements.

"I think there are still tremendous opportunities out there within the sector, large and small," Jacob told InternetNews.com. "I'm excited to start anew again, and see if we can't continue to perform above average for our investors."

The fund rose to popularity with lightening growth which culminated in a 1998 return of 196 percent.

Jacob now manages Internet Fund out of Lepercq's offices, but will leave on July 2 to establish Jacob Asset Management. Internet Fund analyst Michael Dubrow will jump ship with Jacobs.

Jacob will again deal in Internet-related investments at his new company and plans to launch retail and institutional products, said the Journal.

Kinetics does not expect the resignation to interfere with the performance of the fund. New analysts have already been appointed and both sides have expressed the desire to remain on good terms. However, neither Kinetics nor Lepercq plan to put money in Jacob's new company, according to the report.