Robert S. Bacarella discusses Monetta Financial Services Inc. as well as its Monetta Fund and Young Investor Fund. The Monetta Fund, which started as a small-cap growth fund, now emphasizes large-cap growth companies as a means of making more stable and predictable investments. Mr. Bacarella uses a bottom-up approach to find ideas for the fund, and it currently holds 60 stocks, with the biggest weightings in technology, energy and financials. Then, the Young Investor Fund, which is more concentrated than the Monetta Fund, uses a combination of active and passive investing. The active portion of the fund mimics the Monetta Fund, while the passive portion of the fund tracks the market. Mr. Bacarella finds this combination approach generates both stability and performance.
Full interview available here.