Investment Philosophy

IT'S ALL ABOUT THE MANAGER

At The Mutual Fund Store®, we don’t track funds; we track managers. Every day, fund managers make dozens of decisions on buying, holding, or selling securities that comprise their fund’s portfolio. If the name of the fund stays the same but the manager changes, it’s not the same fund.

The mutual fund business is like most other businesses – some people are just better at it than others. An industry statistic states that approximately 80 percent of all fund managers underperform the market indices. If that’s true, that also means 20 percent outperform the market. It’s those managers we attempt to identify and utilize in client portfolios at The Mutual Fund Store®.

CONSISTENCY IS KING

Our goal at The Mutual Fund Store® is to provide superior returns on a regular and recurring basis within the risk level appropriate to our clients’ unique situations. We are not trying to find the highest-performing fund from one year to the next; we attempt to identify funds whose managers have been able to deliver consistently strong returns on an annual basis.

The common characteristic among all the funds recommended by Adam Bold, chief investment officer, is the managers’ consistent performance over extended periods of time. Consistency of performance during periods of positive market movements allows clients’ returns to compound annually (growth next year on profits made this year, etc…) and can help to limit declines during negative market periods.

We also want to know that when a manager’s investment style is out of favor, he or she will still perform better than most other funds in the same asset class.

ASSET ALLOCATION MATTERS

The market moves through cycles and different types of securities investments move in and out of favor. At The Mutual Fund Store®, we believe trying to outguess daily market movements is an impossible task. Instead, our clients have exposure to most asset classes much of the time so that as the market moves through its cycles, our clients are continually participating in positive cycles of any one asset class.

The work we do is based on the Modern Portfolio Theory of Harry Markowitz, who won a Nobel Prize for his work in developing the theory. We use the most technologically advanced software to ensure we have our clients’ money in the right places at the right time.