The Numbers Don't Lie
The study results show that funds selected with our method performed an average of 259% better than the S&P 500 , while funds chosen at random were at 90%. In other words, we easily perform better than twice as well as the S&P 500 and almost 3 times as well as the current selection method. All this while explaining 96% of the benchmark.
| Purchase Date | Holding Period | % cumulative total returns |
| S&P 500 | Traditional
Method | RA Method |
| Oct. 31, 2004 | 12 mos. | 6.0 | 4.5 | 23.5 |
| Oct. 31, 2003 | 24 mos. | 14.5 | 8.5 | 45.5 |
| Oct. 31, 2002 | 36 mos. | 36.0 | 25.5 | 70.5 |
| Pearson Correlation Coefficient | | | 0.99 | 0.96 |
| Nov. 30, 2004 | 12 mos. | 6.2 | 7.5 | 23.2 |
| Nov. 30, 2003 | 24 mos. | 17.8 | 17.4 | 34.7 |
| Nov. 30, 2002 | 36 mos. | 33.0 | 25.5 | 58.0 |
| Pearson Correlation Coefficient | | | 0.98 | 0.99 |
| Dec. 30, 2004 | 12 mos. | 2.8 | 5.5 | 10.6 |
| Dec. 30, 2003 | 24 mos. | 12.2 | 11.5 | 22.2 |
| Dec. 30, 2002 | 36 mos. | 41.7 | 40.7 | 78.8 |
| Pearson Correlation Coefficient | | | 0.99 | 0.98 |
| Jan. 31, 2004 | 12 mos. | 8.3 | 9.4 | 29.1 |
| Jan. 31, 2003 | 24 mos. | 12.8 | 9.9 | 23.7 |
| Jan. 31, 2002 | 36 mos. | 53.2 | 41.9 | 98.7 |
| Pearson Correlation Coefficient | | | 0.99 | 0.98 |
| Performance Relative to S&P 500 | | 1 .00 | 0.96 | 2 .59 |
