Located at the corner of Gasoline Alley and Raceway Drive, the Mooresville, N.C.-based StockCar Stocks Advisors LLC is not your typical gray-suit asset management firm, and the StockCar Stocks Index Fund it launched Oct. 1 is not your average portfolio.
The StockCar mutual fund invests only in the common stock of companies that sponsor or derive revenue from NASCAR Winston Cup-sanctioned events and are part of the StockCar Stocks Index, explained John P. Allen, the firm's chief executive officer. The fund is managed by Robert T. Carter.
Looking to attract the more than 40 million fans of the $2 billion sport, StockCar's prospectus looks more like AutoWeek's Official Racing Fan Guide than a legal document.
"StockCar Stocks Index Fund can bring the same level of (race car fan) commitment to appropriate 401(k) plans and generate an enthusiastic dedication to saving for retirement and increased plan participation rates," said Mr. Allen, a former vice president at NationsBank who left to form StockCar earlier this year.
So far, the fund has $500,000 in assets, Mr. Allen said. In October, it returned 11.8%, compared with the Standard & Poor's 500 index 11.38% return for the same period. Through Nov. 11, the fund's return was 14%, according to the firm's Web site -- which features a cavalcade of oncoming race cars against an orange and gold sunset.
Thirty-three of the companies in the StockCar Index are in the S&P 500, Mr. Allen said. Those companies include Eastman Kodak Co., Coors Brewing Co., BellSouth Corp. and CBS Westinghouse Corp.
In the fund's first two weeks, the best performing stock was Coca-Cola Co., which increased 17.1%, Mr. Allen added. Coca-Cola will be sponsoring the Nov. 21 NASCAR Thunder Special Motegi-Coca-Cola Race at the Twin Ring Motegi Facility in Japan.