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Popular AIM fund reopens
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June 4, 1997: 8:58 p.m. ET
Resurgence in small cap stocks leads to first new investments since 1995
From Correspondent Rhonda Schaffler
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NEW YORK (CNNfn) - One of the hottest small-cap mutual funds of the last five years -- one that has been closed to investors since July of 1995 -- reopened for new investment Wednesday.
The last time the AIM Aggressive Growth Fund was open to new investment, it took in $1 billion in two days.
As anticipated, demand to get in on the action was strong as investors rushed in, hoping to catch the recent small cap rally. By midday Wednesday, the fund had taken in $200 million in new sales. The fund will remain open until it hits $500 million in new sales.
"My sense is that the AIM Group is less trying to play the short term rally, and more trying to offer to investors an opportunity to get invested in a sector that's underperformed for the past year," said Keith Mullins, an analyst with Smith Barney.
Investors are attracted by the AIM Fund's average gain of 19.4-percent per year over the past five years. But this year, AIM Aggressive Growth has slumped.
Despite surging in May, the fund is down 1 percent year-to-date. That spurred redemptions, which in turn made room for new investors.
"The main reason AIM is probably doing it is to replenish some assets they lost as their companies downturned in the earlier part of the year," said Peter di Teresa, small cap analyst at Morningstar. "And it gives them new money to play with while small caps are fairly cheap."
AIM Aggressive Growth invests heavily in computer and healthcare stocks. Its top five holdings are Brightpoint Inc., Heftel Broadcasting, Sybron International, HealthSouth and Health Management Associates.
The flood of new money pouring into AIM Aggressive Growth Fund may prompt other closed funds to consider reopening to investors, many of whom prefer the relative safety and diversity of a mutual-fund to picking small-cap stocks on their own. 
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