The bearish sentiment gripping the stock market has prompted State Street Research and Management, Boston, to reopen one of its funds to the public.

The Aurora Fund, a small-capitalization stock fund, which was closed to new investors in November 1997, will begin taking in new money Oct. 1, a spokeswoman said.

State Street Research closed the fund when it reached $600 million, because fund manager Rudy Kluiber felt that there were not enough investment opportunities for the $5 million per day it was taking in, the spokeswoman said.

However, because of the current slump in equities more companies now fall below the $1 billion ceiling for a small-cap company, she said, and thus there are more companies to buy.

The fund will close again when it hits $750 million or on Dec. 31, whichever comes first, the spokeswoman said. The Aurora portfolio contains roughly 325 stocks that are chosen from the Russell 2000 small-cap index.

State Street Research is not affiliated with State Street Corp., a Boston banking company.

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