A Hunch Becomes A Science

In February, 1994 a semi-retired, 67 year old fund representative was unhappy about available fund selection resources for his own and family funds. With nothing more than a feeling that all was not quite right, armed with an MBA in mathematical programming/statistics, he embarked on an intellectual journey to investigate the fund selection process of a multi-trillion dollar industry.

With a clean slate, a personal computer, millions of bytes of raw performance data, no pre-conceived ideas, time, patience, curiosity and field experience, the work began - very slowly at first. The objective was to come up with a system that serves solely investor needs without being constrained by the possible influence of “group thinking”. It became a labor of love with a dash of obsession thrown in for good measure. After many dead ends, frustrations and only small successes as an incentive, an outline of an improved selection method slowly but surely emerged.