Our approach to sector investing is unique. Unlike many trend-following systems, which make changes on a frequent basis, our holding period for a given sector typically ranges between 5 months and 2 years. Our trades frequently qualify for long-term capital gains. We accomplish this by looking at long term trends, and by considering standard deviation calculations that compare a sector's current volatility with that of its long-term past.

The Select System focuses only on Fidelity's Select family. In practice it is limited to sectors with total assets of $60 million or more. The Select System is not biased toward any particular investment style, and there are no limitations on the number of positions that can be occupied by any major industry group.

Fidelity's fund minimum for taxable accounts is $2500. In order to follow the Select System, you'll need an initial investment of about $20,000. In a typical year, we'll make 5-6 trades in this portfolio.

The Select System's long-term track record makes it one of the best performing mutual fund portfolios tracked by The Hulbert Financial Digest.