The United Co. in Bristol started in March 1970 in surface coal mining. James W. McGlothlin founded the company and rode the coal boom through the energy crisis, mining and processing coal for a country hungry for energy.

A byproduct of The United Co.’s success was cold, hard cash. As the coal industry matured, McGlothlin’s company parked its money in oil, gas, power generation, industrial parts distribution, golf and finance. Along the way, the company evolved from a coal company to an investment and venture firm. United’s financial management division is now its largest: It manages assets, not only for United, but for individuals, endowments, retirement plans and trusts.

The United Co. is private, but its financial expertise is now public in a no-load, open-end mutual fund. Almost two years ago — in June 1998 — the company launched the UC Investment Fund (UCIFX, $12.17), whose objectives are capital and income growth. The fund gives outsiders an inside shot at United’s strong suit in financial management. Participating in the $44 million fund requires a $2,500 initial investment, or $1,000 for retirement plans.

Although less than 2 years old, the fund is already winning some good reviews. In 1999, it posted a 20.69 percent return. Accordingly, it ranked in the top 9 percent of Lipper Analytical Services’ multi-cap value funds. It also got a four-star rating in Mutual Funds Magazine, meaning it ranked in the top 40 percent of mutual funds. Since its inception, UC Investment Fund has given shareholders a 27.55 percent return.

The new millennium has proved to be a little trickier. "This first couple of months has been unnerving, to say the least," says Lois A. Clarke, president and managing director of United Management Co. and CFO of The United Co. "But we feel very good about where the fund is and its prospects."

Although anyone can invest, this truly is a regional fund. The United Co. managed an earlier incarnation of the UC Investment Fund as a private fund for the company’s executives and associates. That fund expired in 1998.

It’s worth noting that the fund’s largest holding as of Dec. 31 was King Pharmaceuticals (Nasdaq, KING: $46.63). The Bristol, Tenn., company makes, markets and sells prescription drugs. The United Co. and its affiliates own 21.8 percent of the company; Clarke sits on its board of directors.

McGlothlin and his United Co. are part of the scenery in Bristol. The multimillionaire has been a regular among The Virginia 100, Virginia Business magazine’s roll call of the 100 wealthiest families and individuals in the commonwealth. Clarke says most of the fund’s shareholders live within a 150-mile radius of Bristol. Many are employees of United itself — the fund is one investment option in the company retirement plan. Other investors are simply familiar with the company and its operations.

"We brought it to market to offer our services and philosophy to outside investors," Clarke says. "We’ve had wonderful support [in our] targeted market. ... People in that region know the name The United Co. and know Jim McGlothlin."