Investment Philosophy and Portfolio Management

Investment Philosophy

The following investment principles have informed and guided our investment decisions and portfolio structures since our founding in 1994.

Buy the Manager, Not the FundTM
When you buy an actively managed mutual fund, what you are really buying is the manager. But because managers change frequently, most published fund ratings don't consider who is behind the numbers. Our in-house research solves this problem by identifying the managers who have added the most value over time, while adjusting for differences in fund objectives and benchmarks. But that's not enough. So we take the time to get to know our managers intimately: Their biases, their strengths, their weakness and their preferred market conditions.

You Deserve a Fortune Builder—Not a Fortune TellerTM
You have to be in the market to earn market returns. Wealth is created by time in the market—not market timing. The reason market timing has not worked historically is that it is all but impossible to catch every good day while avoiding only the bad ones. We believe that markets invariably reward patience and prudence and that there will always be opportunities for long-term investors.

Expenses Matter—All Expenses  
Costs do matter. We look carefully at expense ratios first, but then we also look for hidden fees, like transaction costs at a high turnover fund. They don't show up in the stated expense ratio, but they do come right out of returns.

Good Research is Hard Work—Plain and Simple 
Good mutual fund analysis is plain, hard work. Our unique access to the best and brightest managers provides us with insights others might miss. We deploy one of the largest private databases of mutual and exchange-traded fund information, which helps us to supplement our traditional on-the-ground research with trend analysis.

We "Go Anywhere" in Search of Profits 
Many managers focus on specific investment styles, like growth or value. Problems arise when their particular style goes out of favor. We are not style specific, which allows us to take advantage of opportunities across all markets, both domestic and international, equity as well as fixed income.