Well, Ryan Jacob, who manages the eponymous Internet fund, says that value investing is part of the reason he's done well. His fund is up 16% this year and up 25% in the last five years. It's not a terrible track record. Jacob can thank Apple Computer (NASDAQ:AAPL), Google (NASDAQ:GOOG), Baidu (NASDAQ:BIDU) and News Corp (NASDAQ:NWS), to name a few of the stellar stocks he owns, for helping to drive those returns.
But, again, he said it's the value stocks that have really helped his returns. He points to InfoSpace (INSP) and WebMethods (WEBM) as two value holdings. I haven't looked into those stocks. But Jacob makes an interesting case in that INSP is trading at .7 times sales and its search business accounts for about two-thirds of its sales. He doesn't think the search sales will go down by any means. Now, let me just point out that Jacob owned InfoSpace before it dropped to $17 from $22 in September, though he picked up shares when the stock plunged. Still, you should know why there's a reason Jacob wants everyone to think this stock is of value. InfoSpace is now trading at $20.
INSP 1-yr chart