I believe the ability to invest in any market cap or use any valuation style gives fund managers a better opportunity to capitalize on their stock picking skills. Funds with rigid charters are often restricted to invest in narrow market segments. If a sector is out of vogue and under performs for extended periods of time, as value style has most recently, these managers, their funds and investors take it on the chin.

Fixed asset allocation investment strategies are similar to rigid charters. Market history may exhibit some patterns, but history never exactly repeats itself. Allocation strategies based on the last ten, twenty or fifty years and cast in stone, will simply not outperform the broad market averages.

Flexible investors like Peter Lynch can outperform the market, while rigid investment strategies are destined to under-perform the averages. In other words, don't buy, hold and hope!

The Prospector’s dynamic allocation strategy is flexible and follows the current trends in the market. It isn’t restricted by market cap or investment style. It is also a combination of common sense and intuition. So far it is outperforming the market and remains a work in progress.