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RECOMMENDATIONS
All recommended mutual funds are rated 5 stars (top 10% in category) by Morningstar, and are "ONLY THE BEST" available mutual funds in each respective asset class. All of our mutual funds are considered core holdings, and therefore, rarely change. Equities are treated as a separate asset class, and are traded much more frequently. The reason for this is to maximize the total portfolio return, and at the same time reduce the overall portfolio risk by capitalizing on market volatility.
Clark Brothers is a truly Independent financial services firm:
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Q: Why our funds are better?
1. We select Portfolio Managers, not funds. PM's are the ones making the investment decisions that garner superior investment returns.
2. Totally and completely independent. No commission driven sales, no proprietary products, and no 3rd party arrangements. This allows us to offer the very best products in each and every asset class from any company in the universe.
3. Low expenses and no load. What the NAV doesn't tell you is the opportunity cost of investing the "load" for you, instead of paying that "load" to your broker.
4. Low portfolio turnover. High turnover (trading) dramatically increases your taxes and the funds operating expenses (commissions).
5. Size. Managing a trillion dollars is a lot harder to beat the market/manage, than say, $100 million.
6. Stewardship. Does the fund manager have his own money in the fund? Studies show that managers that have their own skin in the game dramatically outperform those who have zero skin in the game.
Specific examples.
From April 30, 1995-April 30, 2005 56.6% of active mutual fund managers failed to beat the S&P 500 Index for the 5 year time period. For the 10 year time period 78.6% failed to beat the S&P 500 Index (Equitrend.com). If 78.6% failed to beat the S&P 500, then 21.4% beat the S&P 500. So, the question is not, Index v. Managed. The question is poor v. "ONLY THE BEST". Forget about the bottom 80% of mutual funds on the market, and only buy the best of breed (5 star funds).
The majority of hedge fund managers have not done better. In a study by The University of Texas from 1980-2004 the average hedge fund failed to beat the average mutual fund before fees. After hedge funds huge fees (2% annual management fee + 20% of profits) the performance doesn't even beat the S&P 500 Index (White paper: How Smart Are the Smart Guys?). Plus the hedgies are taking on much higher risk v. mutual funds. Lastly, lets not forget about the tax bills on these highly tax inefficient funds (i.e. a lot of short term trading).
Still not convinced. In a study by The University of Penn Wharton School two finance professors discovered that fees, not profits account for the majority of private equity firms earnings. "The study shows that, on average, leveraged buyout funds can expect to collect $10.35 in management fees for every $100 they manage. In comparison, slightly more than half as much, $5.41 for every $100, comes from carried interest."
Conclusion:
With over +8,600 mutual funds, +9,000 hedge funds, and +1,300 private equity funds what funds should you invest in?
Answer: "ONLY THE BEST"
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No commission driven sales-We don't sell any financial products for a commission.
