"I firmly believe that if you buy a stock at a low price, it's likely to produce above-average risk-adjusted returns," he said.
Did that money plunked down for a small company stock fund 18 months ago provide above-average returns?
Similarly, high readings have typically been followed by above-average returns over similar periods.
He also looks for above-average expected 12-month returns, based on an issue's price and yield.
Each fund produced those above-average returns with lower risk than the S.&P. 500.
He pays special attention to companies that have shown above-average return on equity over the last six years.
Both men said their systems had produced above-average long-term returns.
Venture capital investments are usually high risk, but offer the potential for above-average returns.
"We think this approach is too simplistic to provide long-term, above-average returns," she said.
It invests globally, looking for strong businesses with above-average returns.
