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Fund Selector
Legend Advisory Corporation's Fund Selector is designed to help identify the mutual fund that it deems has the best potential to outperform its peers within a given asset class. This discipline seeks to deliver a superior relationship assessment methodology by employing proprietary, time-tested formulas in conjunction with customized mathematical indicators.
Legend Advisory Corporation utilizes technical, relative strength and momentum indicators in the identification process. These formulas include variations of standard mathematical equations as well as proprietary variables that have been developed through years of repeated training and testing.
Rather than relying solely on a fund's stated objective, fund data is scrutinized to identify all the different asset classes and sectors in which the fund invests. Performance attribution analyses are then performed in an attempt to gauge true value added/detracted for each asset class and sector over different time periods.
In particular, Legend Advisory uses certain variations of exponential smoothing and rolling analyses, as well as proprietary formulas that assess fund performance consistency. Furthermore, proprietary formulas are employed to measure risk in several unique ways. We believe this enhanced evaluation technique surpasses conventional risk analysis methods such as variance or standard deviation of returns.
To compliment our quantitative research, Legend Advisory Corporation employs certain subjective methodologies in the fund selection process. Our team of investment management professionals draws upon its knowledge base to identify and compensate for specific anomalies. For example, in situations where a fund has changed managers in the past year, an analysis of its 3-year performance may not be relevant. In such cases, Legend Advisory Corporation may decide to combine data from the manager's previous and current funds to gain a broader perspective of his or her money management skills.
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