“World’s Greatest Mutual Fund Re-opens — Could re-close any minute”

By Travis Johnson, Stock Gumshoe, June 18, 2008

This teaser email came in a week or so ago, from another Stansberry service, Extreme Value by Dan Ferris.

Here’s how they whet our appetite:

“In 17 days… The 19,900% Mutual Fund Could Close for Good…

“MSNBC says… “Get in line early for this fund.”

“It’s been called the “Holy Grail” of mutual funds…”

Nice, huh? If you’re like most people, even most individual stock owners, you still hold some mutual funds — and I do, too. There’s nothing wrong with having someone else manage your money, or a portion of your money, and a good mutual fund is by far the cheapest way to do that for most people (of course, a bad mutual fund can be disastrous and expensive, and a mediocre will slowly bleed your account with fees and turnover costs, but the good ones can be very good).

The mutual fund they’re teasing here has been closed to new investors for “almost three decades”, according to the ad, having closed the doors in the 1980s.

This one has been more desirable than many other closed funds in recent years — as they note in the teaser, “a few years back, one share was offered for sale on Ebay for almost 10x its market price.”

That’s just stupid, of course — it really happened, though the sale didn’t actually take place and the listing was removed because Ebay isn’t allowed to sell securities … and it was in the height of the stock market mania in 1999, so God knows what people were thinking.

They tease us a bit more with the performance of the fund in recent years …

“Over the past 5 years the fund is up over 73%… Since 1998 it’s returned almost double that amount… And for investors lucky enough to own shares for last two decades? Well, they’ve been rewarded with gains of over 1,253%…”

Not bad!

So Ferris says that “I recommend you buy The World’s Greatest Mutual Fund right away. I think it’s one of the safest, long-term investments around today… ”

Of course, in exchange for sending you his special report, entitled “The World’s Greates Mutual Fund,” Dan and his publishers at Stansberry & Associates would like you to try out the Extreme Value newsletter for $1,000.

The Gumshoe, of course, does not require that you send him $1,000 (though smaller contributions are more than welcome) — I’ll let you know the “secret” of this fund in just a moment.

The fund also has a Buffett connection …

“The World’s Greatest Mutual Fund was started over 38 years ago by one of Warren Buffet’s closest advisors.

“The story goes, back in 1969 when Buffet closed his first investment partnership, partners were given the choice of Berkshire Hathaway stock or cash.

“For those that chose the cash distribution, Buffet strongly encouraged them to invest in this fund. Investors who did have seen gains topping almost 20,000%.

“How exactly does The World’s Greatest Mutual Fund create such stellar returns?

“Simply put, they’ve perfected an investment strategy that uncovers the most profitable businesses in the world.

“And while I can’t reveal the full detai