Investing is too important to NOT aim for the best.

If you’ve found this website it’s because you believe analysis leads to better solutions than random choices.

The hard part is finding a form of analysis that is effective when short term randomness hides the truth. Our natural instincts are not so good in this situation – caveman instincts are bad for investing.

Even a clueless day trader can get lucky and look like a genius sometimes.

But what you want is a systematic edge that pays off with better results in the long run by tilting the odds in your favor every time you invest. That doesn’t mean every investment you make will beat the market every time. If you’re looking for that, you’re on the wrong web site. There’s a guy named Bernie Madoff who can promise you that.

What we offer here is a scientific approach that puts the odds in your favor so that you come out ahead over the long haul. We’re talking about using statistical methods.

Rising Stars Newsletter is the monthly newsletter of Kazio – an investment analytics website that applies cutting edge academic research to help make smarter investment decisions.

In Rising Stars we implement a statistical analysis called Active Share from an academic study to identify equity mutual funds that on average outperform market benchmarks.

We identify Rising Stars – funds that on average outperform their benchmarks, by using the methodology from a paper written in 2016 by Martijn Cremers and Ankur Pareek called Patient capital outperformance: The investment skill of high active share managers who trade infrequently.

Since the publication of this papers there have been numerous articles recommending the methodology and its use in finding active managers while avoiding “closet indexers” who charge high fees but mimic the index.

Until now there has not been any practical way for individual investors to implement the recommended strategy.

Ray Meadows, CPA, CFA, MBA, is the creator of this website and the Rising Stars newsletter. Ray did not invent the methodology used here. His role is to make it accessible to individual investors. Ray is well qualified for this task and, just as important, his life-long interest in quantitative analysis and teaching about investing motivated him to figure out how to be the “professor next door” for people interested in learning how to invest smarter. Go to Ray's story