Investing in Open Source?

echrist1 asks: "I'm in my school's investment club, and I'm in charge of investing $10,000 (real money) into technology equities. Clearly I want to make a profit, but I also want to do something to help the Open Source movement. Does anyone know of mutual funds that invest specifically in companies that further Open Source?"

Comments

Re:Fiduciary obligations

[bill_mcgonigle]

if you are playing with someone else's money - even as a learning exercise - you have an obligation to act in their best interests.

Maybe he's setting up a social responsibility fund. Maybe he's setting up a fund around companies that will have positive impacts in the Third World. Maybe he's given a chunk of change for speculative investing in up and coming technologies.

We don't know.

Follow the institutional ownership

[greg1104]

One approach to finding out which funds might meet your needs is to look at which institutional investors have large blocks in the open-source companies you consider worthwhile. For example, we can look at the data for Redhat (and, yes, I'm laughing too at who is providing that data) and see that there are large positions in the company held by Fidelity, T. Rowe Price, etc. From that, you can check out the various funds that company offers and see if you can find one that matches your requirements. Taking a glance at our host's ownership information shows a large Fidelity block as well, but no other overlap I noticed. From this limited look, I conclude you should be looking at Fidelity's funds. That approach should get you on the right path. You can do the rest of the legwork--you're the student here, after all; I already know how to invest.

Skip it

[WindBourne]

I have been watching it as well. In fact, I remember it from the late 80's. The simple answer is that if you are investing OTHER peoples money, you must pay attention to what will make money. In fact, if you are here asking, then you really MUST pay attention to what will make money shortly. Considering the world situation, tech can be blown out in 100 different ways.

Try energy. Oil is a good one. It is almost certain that W's tax cuts will be removed (and soon), but the simple answer is that China and India are are on a tear. They will be increasing demand on ALL oil resources. I would look heavily at any oil company. In addition, consider nukes AND alternatives. High Oil prices combined with Global warming will force us down this path. Wind energy companies are good ones. GE and westinghouse power are interesting.

Finally, consider looking more around the globe. America is heading towards a major slow down. W has ran up a major deficit like Reagan did. In addition, he is spending all sorts of money on funding the war, tearing apart EPA, buying the most expensive drugs for seniors, etc, and even cutting alternative energy research WHILE giving tax cuts to oil. Combine with moving core manufactuering to China, and you will soon see a collapse in our money policies. It is only a matter of time before the dollars starts to sink and we will be forced to raise interest rates AND taxes to keep foreign money flowing into America. This would normally induce a major global depression (think 1930s), but enough business is globalized as to allow the other markets to move forward without us.

Not exactly what you want but....

[antifoidulus]

Consider waiting till early next year and investing in the Spectra Green fund, a fund set up by Bill Clinton whose goal is to invest in, and actually make money using, environmentally friendly alternatives to fossil fuels. It's tech, it's a good cause, it will(hopefully) make money.