Rockland's Dick Gould Sees More Gains Ahead.(A)

Byline: DAN MOREAU

Dick Gould believes in small-cap growth stocks driven by fundamentally strong companies with plenty of positive earnings surprises. As the manager of Rockland Small Cap Growth Fund, Gould has a portfolio of some 100 stocks he's managed to significant long-term gains using just that strategy.

It's a style IBD investors will recognize: sizzling high P-E stocks bought early as they climb in value. But these stocks are often volatile.

So it's a strategy that means staying on top of stock price movements and remaining committed to a strict sell strategy in order to unload shares that falter even slightly.

Investors who put money in this fund know they are in it for growth, not buy-and-hold investing. But between his own high turnover needs and his investors, the fund's annual turnover topped 500% as recently as a year ago.

The problem was market timers. To slow timers, who have favored the fund for its high-growth stocks, Gould in late 2002 slapped a 1% redemption fee on fund shares held less than 30 days. Turnover now is relatively lower, at 200%.

The small fund, with just over $100 million in assets in its portfolio, has delivered a roller coaster in returns to its investors. It was up as much as 70% for the year last month. It has since tumbled to a year-to-date gain of a still impressive 57.27% going into Thursday.