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Roy's Mutual Fund Portfolio
as of December 31, 1999 (& 1998 for good measure)
A few comments below...

Fund	As of December 31
	1999	1998
T. Rowe Price Science & Technology	24%	14%
Vanguard 500 Index	15%	16%
Longleaf Partners	13%	15%
Vanguard European Stock Idx	13%	0%
Vanguard Health Care	12%	14%
T. Rowe Price European Stock	11%	11%
Cohen & Steers Realty Shares	8%	10%
FBR Financial Services	4%	6%
MAS High Yield Instl	0%	14%
	_____	_____
Total	100%	100%

Some comments:

• Early in 1999, it dawned on me: "Why do I own any bond funds." So I sold MAS High Yield Institutional and bought Vanguard European Stock Index.
  
  
• I now have a fairly heavy weighting in Europe (about 24%). European stocks have been ready to take off for almost as long as U.S. small-caps, but I think the time is finally near.
  
  
• About this time last year, I was ready to sell Cohen & Steers Realty Shares and buy another real estate fund. But every time I thought about selling, C&S was close to the top of its peer group for the previous 12 months. So I still own it. If I do sell this year, I doubt that I'll buy another real estate fund.
  
  
• I've just about had it with Longleaf Partners, too. Here's a public promise: If this fund doesn't start showing signs of life by June 1, I'm out. I used to look forward to their annual and semi-annual reports, but now I'm getting pretty tired of the "We're in this together" and "We're picking great stocks that somehow continue to suck" thing.
  
  
• Sometime soon, I'm going to invest in a beaten-down value fund (not yet determined). Value will come back, and it would be foolish not to be there when it does. On second thought, that's another reason I can't seem to part with Longleaf Partners.
  
  
• I continue to believe strongly in three sectors -- technology, health, and financial services. I should probably beef-up my financial services holdings. At some point, I may buy an Internet index fund.
  
  
• I made two uncharacteristic investments during the year which, in the interest of full disclosure, I suppose I should disclose. I'm now the proud owner of shares in two mutual fund companies: T. Rowe Price Associates and Franklin Resources. T. Rowe Price is a screaming acquistion target. I bought my shares at about $33, and I believe someone will offer $52-$55 per share for the company, relatively soon. Heck, if I had $6.5 billion sitting around, I would buy it myself, right now. Franklin Resources seems like a good play for a value rebound. The shares have been holding their own in a tough market and, when value does snap back, Franklin should be a big beneficiary.
  
  
  
  
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