LYNCH. BUFFETT. GRAHAM. ...COSTANZA?

Of all the great investing gurus of the past fifty years, perhaps none has more to offer the individual investor than Seinfeld's George Costanza.

As fans of the iconic '90's sitcom will remember, Costanza was a loser – unemployed, unattached and living with his parents, until one day he decided to do the exact opposite of what he normally would. A great job and a beautiful girlfriend soon followed.

A recent study titled, “DUMB MONEY: MUTUAL FUND FLOWS AND THE CROSS-SECTION OF STOCK RETURNS”, by economists Andrea Frazzini of the University of Chicago and Owen Lamont of Yale University, shows that mutual fund investors can greatly increase their returns by doing the exact opposite of what they (and the vast majority of other individual investors) usually do.

HOT. THEN NOT.

Many mutual fund buyers are locked in a vicious cycle that causes irreparable harm to their wealth. They buy right before most funds fall in value, and sell right before they rise.

Frazzini and Lamont show that most fund buyers make their investing decision based on recent past performance. They purchase mutual funds that have posted the most impressive gains in the last twelve months, expecting that hot performance to continue.

But as Frazzini and Lamont prove (and contrary to what most investors believe), not only are these hot funds unlikely to continue to be top performers in the next twelve months, they are actually more likely to UNDERPERFORM the average fund in the next year by a significant margin.

Individual investors buy at the top, watch their funds decline in value, and (to add insult to injury) often give up and sell shortly before a big turnaround. Then they do it all over again.

Dumb Money investors:

• Buy top-performing funds
  
• Lose money when the value of their investments falls
  
• Sell at the bottom, often right before a turnaround
  
• Repeat

FOLLOW THE MONEY. THEN GO THE OTHER WAY.

Powerfund investors do the opposite. Our managers pick the best funds in the most out-of-favor areas by analzying where the dumb money is going, and where it isn't. We buy mutual funds before they catch fire, not after.

We call these out-of-favor gems Powerfunds - high-quality no-load mutual funds that are being ignored by most investors - the very funds that are poised for market beating returns in the months ahead.

The Powerfund strategy focuses on:

• Buying funds in out-of-favor categories before they get hot
  
• Holding funds until they reach full valuation
  
• Selling at the top
  

It's MAXadvisor's own brand of turbo-charged contrarian investing, zigging when other fund investors are zagging, and it works.

We've been managing the Powerfund Portfolios since 2002, and in that time each one, even the ultra-conservative Safety Portfolo (which is more than 70% bonds!), has soundly beaten the S&P 500 index.

Through our own research, we’ve also uncovered similar patterns of wealth destruction by fund investors. As long-time readers of our flagship website, MAXfunds.com know, we’ve always highlighted out-of-favor funds and categories and warned of over-hyped funds. Our award winning website highlighted how bloated certain funds are where the dumb money was heading. Powerfund Portfolios is the product of our extensive mutual fund analysis.

The MAXadvisor Powerfund Portfolios is not a complicated fund timing scheme or an impossible-to-follow trading system. We manage high-quality portfolios for long-term investments.

Each Powerfund Portfolio is made up of a group of terrific, no-load, low-cost mutual funds that are carefully chosen to work together to lower volatility and increase returns.

No matter what your risk level, we've got a Powerfund Portfolio for you. We’ve designed six model portfolios ranging in risk from very safe to quite aggressive – we even have a seventh for investors with as little as $10,000 to invest.

The Safety Portfolio is our cash cow, designed to produce solid, regular income with very little volatility.

Our Daredevil Portfolio is our most aggressive offering, and is designed to produce growth of principal.

Our other five portfolios are each designed to satisfy the risk requirements of every type of investor in between. Whatever goal you want to achieve with your money, we have a model portfolio that will help you do it.

The MAXadvisor Powerfund Portfolios are made up of between nine and eleven no-load, low-cost mutual funds that are carefully chosen to work together to lower volatility and increase returns.

PORTFOLIO	1-YEAR	3-YEAR	5-YEAR	INCEPT.
Safety	16.68%	17.52%	30.49%	60.10%
Conservative	25.26%	14.76%	30.61%	68.89%
Moderate	28.23%	7.16%	28.27%	57.83%
Growth	37.47%	6.61%	30.94%	74.93%
Agg. Growth	32.97%	18.28%	46.76%	119.24%
Daredevil	17.19%	2.82%	32.50%	76.60%
Low Minimum	30.44%	2.91%	19.49%	53.53%
S&P500	33.12%	-20.19%	0.87%	8.80%

S&P 500 data for comparison purposes. All data on this page as of 01.31.10.

We invest in the best funds from top quality fund companies like Vanguard and T. Rowe Price. We also find exciting new funds from lesser known fund companies. All the funds in our Powerfunds Portfolios are no-load and low-fee. High fees and load charges eat away at investors' long-term returns. There are plenty of high-quality no-load mutual funds that don't cost an arm and a leg to invest in. Subscribe to the MAXadvisor Powerfund Portfolios - just $24.95 per quarter after a 30 day free trial - and you'll own an investing portfolio full of them.

Please Read This Important Notice:
As with all historical data, past performance is not an indication of future results. Investments in equity mutual funds such as those in the MAXadvisor Newsletter's model portfolios carry an inherent element of risk including the potential for an actual loss of principal. Hypothetical performance such as that shown above does not take into consideration a variety of real world factors including investment preferences, investment fees, or capital inflows and outflows and actual results may vary. Since inception for each portfolio 04.02.