How Do You Outperform?
Our Philosophy

How can a portfolio seek to outperform other professional investors? It is generally agreed that there are several ways an investor may outperform the market, including:

• By possessing exceptional information to make market-timing decisions.

• By the superior analysis of information resulting in extraordinary stock selection. Aside from a handful of legends with superior insights, these examples are few and far between.

• By exploiting investor mistakes. Common mistakes investors make include overconfidence (ego), aversion to loss, mental shortcuts, and other human tendencies. The difficulty of exploiting investor mistakes is identifying when they are occurring.

Based on sound investment principles, EquityCompass employs extensive analysis of changing fundamentals to identify favorable probabilities for stock performance. Rules-based stock selection reduces the mistakes of judgment errors wrought by emotional decision-making.

View a brief video for The Research Opportunity Portfolio - The EquityCompass for Individual Investors

Source: Behavioral Finance and the Sources of Alpha, Russell J. Fuller, CFA, President, RJF Asset Management, February 6, 2000