(April 20) – “Many of the funds hit hardest in the Nasdaq bear market have rebounded during the past two weeks — several have surged more than 40%,” writes Karen Damato in today’s Wall Street Journal. “And at least one audacious fund manager insists it is only the beginning.

“Robert Zuccaro, whose Grand Prix Fund tumbled 77.6% during the 13-month slide, predicts many of the most-savaged funds are destined for stardom. That, he says, is the lesson of the brutal 1973-1974 bear market and the decade that followed, when some funds that had suffered the most posted some of the heftiest returns.

“Now, as then, he says, funds absorbing the biggest hits are those that take outsize risk in volatile and fast-growing parts of the economy. Over time, he says, ‘if you assume more risk, you will get paid more.’”

“That would be good news for investors in Mr. Zuccaro’s Wilton, Conn., fund, which is up 9.9% since April 4, and for a lot of other investors, as well. From March 10, 2000, through April 4, 33 funds posted peak-to-trough losses exceeding the 76.8% drop posted by the worst-performing fund in 1973-1974, according to fund-tracking firm Lipper Inc.

“But although the past two weeks have been promising, some other managers with better bear-market records are skeptical. They say investors shouldn’t assume the most-pummeled funds, typically loaded with Internet and other emerging-technology stocks, will be leaders during the market’s next extended bull run.