A Mathematical Process, Applied with a Human Touch

At Cape Ann Capital, our investing process utilizes a rigorous analysis of all mutual funds available to U.S. investors. Our process begins with the broadest view of the investment landscape, but it is constantly driven with you as our target, the individual investor’s best interest.

We use a process called Returns-Based Style Analysis, which allows us to create a unique benchmark for each mutual fund. This benchmark provides insight into the history of the fund’s performance and track record. It allows us to identify managers who have been able to consistently outperform their benchmarks. 

Funds that pass this hurdle must have a minimum 10-year track record and meet our stringent criteria and advanced analytical metrics. This process removes 99% of all available funds, leaving us with a smaller batch of a few hundred funds.

From the funds remaining, we manually and methodically scour the options and personally select a final “basket” of approximately 15 to 25 funds, or enough funds to deliver the appropriate exposures and diversification levels to align with the desired benchmarks. These remaining funds make up the entirety of our custom-built investment portfolios. We call this group the "buy list."

At Cape Ann, we work with each client to create their unique portfolios based on the buy list. Each client’s portfolio is designed to meet their unique risk tolerance and investment objectives.

To learn more about our investment process, please contact us directly.