rs emerging growth fund portfolio review the underperformed russell 2000 index 1 rising 4 41 vs 5 68 for over past six months this underperformance was largely attributable to our overweight position in semiconductors and software despite significant increases earning estimates rapid reacceleration earnings technology stocks experienced a price p e multiple contraction example semiconductor multiples have contracted from 33 times 23 on 2005 per share eps since end of january 2004 an average estimate hike 28 after first quarter results were posted we believe that valuation result impending interest rate commodity spikes reflexive pullback remain overweighted due belief will be preferred by investors second half consumer discretionary led internet services helped cushion downside within sector about 10 such as infospace 48 ask jeeves 0 85 valueclick
