Fund Selection Process

Clausen Capital Management (CCM) focuses on three things to successfully create and manage it is portfolios.  They are Fund Selection, Market Risk Methodologies, and Investment Disciplines.

Fund Selection is paramount to a well designed portfolio.  Our selection process is focused on finding those fund managers who have a combination of consistent annual returns as well as well managed draw downs during periods of market decline.  We are looking for the “Best of the Best” managers, not the manager who has a hot stock picking capability one quarter and misses the mark the next quarter.  We are also not interested in the manager who allows his fund to experience index-level draw downs as the overall markets decline such as the financial collapse in 2008. 

We continually evaluate mutual fund managers and their performance.  Having access to a database of over 8000 mutual funds allows us to compare fund objectives, technical performance, as well as fund’s balance between gains and draw down. 

We have researched this fund database excluded those funds that do not meet our initial buy criteria. This leaves us with a high quality family of about 200 to 300 no-load mutual equity funds covering the entire range of growth potentials, risk levels, volatility, and domestic and international focus.

Most importantly, we visually compare every fund we either hold or are thinking of investing in to confirm the overall smoothness of the equity curve during all market environments.