Tuesday, August 21, 2007
Forbes expert focuses on nanotech
In The Forbes/Wolfe Nanotech Report, industry expert Josh Wolfe offers his insights into investing in the sector via venture capital-like firms as well ETFs focused on nanotech.
“One way for individual investor to gain exposure to nanotech is to invest in publicly traded investment firms making private VC-like investments such as Harrris & Harris (NASDAQ: TINY) and Arrowhead Research (NASDAQ: ARWR).
“ARWR and TINY have both grown about 46% annually since 2002 and both market caps are around $250 million. Arrowhead tends to invest in really early stage companies and TINY tends to invest in syndicates of other top venture capital funds.
“While you might not be able to get into those top-tier funds, TINY offers a neat way to slip into its deals. I know these guys first hand and the kinds of bets they're making are heavily skewed to the upside. They might lose 100% of any investment on the downside — but they're swinging for 500% or more on the upside.
“You might also invest in indexes or ETFs like the PowerShares Lux Nanotech Portfolio (ASE: PXN). For full disclosur, note that I'm an investor and board member of Lux Research.
“A low-cost nanotech ETF also provides diversification and sector representation (the PowerShares Lux Nanotech Portfolio, has grown at an annualized rate of 10.3% since its inception late 2005.”
posted at 3:07 PM
