In India defense would not be classed as a vice, but as a necessary part of our national security! We’ve also had tobacco and alcohol related companies freely trading on the stock exchanges for decades—the only unusual “industry” here is related to gambling. The likes of casinos, lotteries, horse racing, and all related business attract a lot of individual money. So it makes sense to try and profit from human greed I suppose.
But that’s not all. As this Forbes interview shows, the fund even put money in strip clubs, cabarets, and other sex-related (but legitimate) enterprises!
Now, on his own since resigning from the Vice Fund last September, Ahrens plans to concentrate on just the gambling sector, which he believes will outperform the general market over the next several years.
"It's just a booming growth industry," enthuses Ahrens, who posted average annual returns of 34% and 24% for the two full years he ran the Vice Fund, while returning less than 5% for the first half of 2005.
"But unlike many industries that have a defined demand and supply, gaming has the ability to expand in markets where it doesn't exist. Virtually every election nationwide has some legislation to allow gaming in a new jurisdiction or to expand the types of gaming that already exist. Horse racing and slots, or maybe slots to a full-blown casino."
Has to be read to be believed.
