Allocation Aces
By Penelope Wang

(MONEY Magazine) – Ned Davis Research, based in Venice, Fla., is highly respected among institutional investors for its historical and quantitative market analysis. Now, with the launch of the Ned Davis Research Asset Allocation fund, individual investors can tap into the firm's expertise.

Why offer a retail fund now? "We have always felt that asset allocation was important, even when the rest of the world didn't," says Geoffrey Raymond, co-head of the portfolio team. "Retail investors now want one-stop shopping exposure to various asset classes." (The fund, distributed by Gabelli & Co., is sold in load and no-load formats; the expense ratio for no-load investors is 1.65%.) a The fund takes a market-timing approach; as little as 0% or as much as 100% can be in equity or fixed-income. The typical stock portion ranges from 40% to 85%, invested in fast-growing companies of all sizes. Today's mix: 60% stocks, 40% bonds, based on a view that we're in a long-term bear market. But the Ned Davis team does expect to play cyclical bull market rallies, and Raymond claims that its analysis of sector valuation, historical trading patterns, earnings acceleration and fundamentals allows it to "identify the next market leaders quickly." --P.W.